Podgornik, who founded the fashion house Willow in 2003, will release her new range in time for the spring-summer 2015 season.

KITX will be a clothing and footwear brand with an ethical and sustainable focus, "a positive impact label," she said, designed and produced out of her Sydney studios.

The designer, who was a darling of the national and international fashion scene, especially in New York and London throughout the 2000s, has conducted "extensive" research and consulted with numerous sustainability specialists and ethical fashion organisations for her new project.

She has also spent time seeking suppliers and manufacturing partners who share her environmental values and awareness of social issues.

"I strongly believe in a better world, through the simple mantra of making women look and feel beautiful, without harming our precious planet, so everyone can win," Podgornik said.

"KITX is born from a spirit of kindness, integrity, transparency and 'X', representing the future. Staying true to these key words and harnessing and inspiring the passion and talent of our team, we are focused on creating unique designs our customers love to wear, while caring about the impact every decision has on the planet and the people around us."

This new direction for Podgornik signals the end of a tumultuous chapter in her creative career.

In 2011 the Apparel Group, owners of the Saba, Jag and Sportscraft brands, acquired a majority share in the label. Podgornik was appointed creative director but was sacked in 2013. She moved ahead with legal action before the two parties settled out of court.

In a frank op-ed published on Vogue.com.au weeks after her swift exit, the designer wrote: "My heart has broken; I feel that my dream and my achievements over the last 10 years have been taken away from me. It is devastating, not just for me but for each and every good person who has worked tirelessly to grow Willow."

Now, two years later, Podgornik is in a much more philosophical place.

"KITX is committed to being an example of true style for the modern global era which includes our ethics and values, we simply don't believe in quality without honesty and integrity," she said.

The debut collection of her new label will be unveiled to buyers during Paris Fashion Week in March, where campaign images will also be photographed ahead of an Australian launch "later in the year," she said.