Kardashian's legal team will apparently claim that Old Navy enlisted Melissa Molinaro, who bears a resemblance to the reality star, to mislead viewers into believing that the Kourtney and Kim Take New York star endorses their brand.
Old Navy also reportedly upset Kardashian by sending a series of tweets about the campaign to her official account, including one message posted in early 2011 which read: "@CBSNEWS reports that Old Navy's Super CUTE star looks like @kimkardashian. #LOL. What do you think?"
Lawyers for Kardashian are currently drafting the lawsuit and will seek as much as $20m (£12.3) in damages, reports TMZ.
Watch the Old Navy commercial featuring Melissa Molinaro below:
The Old Navy commercial's star Molinaro has also been linked to Kardashian's former boyfriend Reggie Bush, after being spotted on several dates with the New Orleans Saints halfback in recent months.
Kris Jenner previously revealed that she plans to get a facelift before daughter Kim ties the knot with fiancé Kris Humphries.
Khloe Kardashian's husband Lamar Odom was involved in a car accident on Sunday, which took the life of a 15-year-old boy.
> Khloe Kardashian, Lamar Odom tweet condolences to family of car crash victim
> Kourtney Kardashian's brother Rob 'won't visit her'