Marco Bizzarri, Gucci CEO, said the brand would go fur-free beginning with its Spring 2018 collection.
Announcing the decision at the London College of Fashion, Mr Bizzarri said: "Being socially responsible is one of Gucci's core values, and we will continue to strive to do better for the environment and animals.
"Do you think using furs today is still modern? I don't think it's still modern and that's the reason why we decided not to do that.
"It's a little bit outdated. Creativity can jump in many different directions instead of using furs."
Other brands to have banned fur include Calvin Klein, Giorgio Armani, and Ralph Lauren.
The fur industry is estimated to be worth more than $55 billion a year.