Hollywood icon Meryl Streep ditched Chanel for Lebanon's Elie Saab for her 2017 Oscars look, stirring quite a controversy.

The actress rocked an elegant jewel-encrusted off-the-shoulder Elie Saab gown, which definitely rose to the occasion of her 20th Oscar nomination ... because really, does Saab ever disappoint?

But, Karl Lagerfeld, head designer and creative director of Chanel, was counting on dressing the renown actress for Hollywood's most anticipated event. 

Upon learning that Streep would not wear his $105,000 design to the Oscars, Lagerfeld accused her of turning down Chanel for a fashion house that will pay her to wear its design.

Speaking to Women's Wear Daily, Lagerfeld claimed that Streep's representatives had requested a Chanel gown for the Oscars. They had allegedly ordered a gown from Lagerfeld's recent couture collection and asked for an adjustment to the design, only to change their minds abruptly.

The French fashion house was executing Streep's request when a representative called and said, according to Lagerfeld, "Don’t continue the dress. We found somebody who will pay us."

Designers often pay celebrities to showcase their designs on red carpets. But, Chanel has a policy of not paying celebrities to wear its clothes. It does, however, grant gowns as gifts. 

Lagerfeld said this policy warded Streep off, calling her "a genius actress" and accusing her of "cheapness".

"After we gift her a dress that’s 100,000 euros [$105,000], we found later we had to pay [for her to wear it]. We give them dresses, we make the dresses, but we don’t pay," he said.

Streep decided to wear an Elie Saab number to the Academy Awards on Sunday, so was she paid to do so?

Streep denied the accusations and accused Chanel of defamation

"This is a completely untrue story," Streep's representative told Entertainment Tonight. "Ms. Streep would never wear anything in exchange for payment." 

At the time, it was unclear whose design she will wear.

Streep's stylist explained that Chanel was one of many brands the styling team was considering for the Oscars, saying that it is against the actress' personal ethics to be paid to wear a gown on the red carpet.

Soon after, Streep personally slammed Lagerfeld's allegations as flat out lies and accused him of defamation. 

"Karl Lagerfeld, a prominent designer, defamed me, my stylist, and the illustrious designer whose dress I chose to wear, in an important industry publication," she said in a statement obtained by ET

Lagerfeld apologized ... kinda

Lagerfeld recently submitted a semi-apology, in which he calls the issue a misunderstanding. 

"After an informal conversation, I misunderstood that Ms. Streep may have chosen another designer due to remuneration, which Ms. Streep’s team has confirmed is not the case,” he said, according to The Observer.

Streep is still not having it and says she is waiting for a real apology.

Streep was nominated for the Academy Award for Best Actress in a Leading Role for her role in Florence Foster Jenkins (2016). The three-time Oscar winner lost to Lala Land's Emma Stone.

This wouldn't be the first time Streep stuns in Elie Saab Couture

Saab was all the rage at the Oscars and Oscar parties