Luxury fashion brand Balenciaga has designed a large blue tote bag that bears a striking resemblance to IKEA's iconic Frakta bag, but with a significantly higher price tag.

Balenciaga's Arena tote has been likened to IKEA's Frakta shopping bags, thanks to its similar blue hue and double shoulder straps.

However, the French fashion house has priced their luxury offering at £1,705, while the Frakta costsjust 40 pence.

While many companies would see this as a copycat scandal, IKEA remains in high spirits – claiming to be "extremely flattered" by Balenciaga's design.

"We are extremely flattered to seemingly be an inspiration for the latest catwalk designs for Balenciaga," said Stella Monteiro, sales leader for IKEA UK and Ireland.

"Our IKEA Frakta tote is one of our most iconic products which are already owned and loved by millions – now the many people truly can get the designer look for less."

Balenciaga's take on the Frakta is made from blue, wrinkled, glazed leather. It also zips shut at the top, a feature lacking from the original tote.

IKEA's popular Frakta bags were originally designed by siblings Marianne and Knut Hagberg. They are made from synthetic material polypropylene, making them suitable for uses ranging from waste disposal to storage for clothes.

Last year, Danish design brand Hay redesigned the iconic blue and yellow bag as part of a newly announced collaboration with the Swedish furniture giant.

Balenciaga was founded in 1919 by Spanish designer Cristóbal Balenciaga. Currently, the luxury house is headed up by cult brand Vetements' creative director Demna Gvasalia – who appears to be steering the brand in a much more subversive direction.

The appointment of Gvasaliahas, who took over from Alexander Wang, was described as "daring and intriguing", as Balenciaga had previously been known or its refined and understated collections.

The IKEA-like tote echoes the work Gvasaliahas does at Vetements, which has released apparel that includes yellow T-shirts branded with the logo of courier firm DHL.