Palace x Ralph Lauren is officially happening. What we know so far...

Picture one of the biggest streetwear collaborations of the year and odds are you don’t picture a Ralph Lauren shirt in the mix.

Yet on Thursday in Tokyo’s Shibuya district, three billboards appeared signalling the arrival of the surprising new fashion collaboration. On a navy-blue background, Polo Ralph Lauren’s signature pony appeared above bold italic lettering spelling “Palace.”

The hypebeast rumour mill was spun into a frenzy.

And today, in an exclusive with Business of Fashion, it has been fully confirmed that British skate brand Palace is set to drop a collaboration with the preppy American giant.

This one’s likely to be fairly major.

Founded in 2009 and best known for its skater-inflected counterculture irreverence, 1990s British working class-inspired aesthetic and loyal fans, Palace regularly releases limited batches of product to a diehard fan base.

The link between Polo Ralph Lauren and streetwear may seem tenuous at first—after all, the American giant is best known for a preppie-western aesthetic—but the look has long influenced street culture and, at the brand’s peak, became a status symbol for millions of urban consumers.

“Palace Ralph Lauren is a timeless collection that represents a love letter from a young London skateboard company to their favourite brand in the universe," Palace is quoted as saying on Ralph Lauren’s Instagram.

According to Business of Fashion, the collection will consist of menswear items like tops, trousers, outerwear and accessories, including a classic Polo Oxford button-down shirt featuring the logos of both brands.

The collection was inspired by Polo pieces that Palace co-owners Lev Tanju and Gareth Skewis have worn throughout their lives. “It’s the only brand that you can wear to a board meeting, a funeral and go to the football in — and all in the same day,” Skewis tells Business of Fashion.

Not only is the collaboration an obvious way for Ralph Lauren to extend its appeal beyond classic dressers and target a younger audience, but it’s also a way for Palace, which operates only two retail stores (in London and New York) and has purposely limited its wholesale partnerships, to increase its global exposure.

Prices are expected to sit within Palace's usual range of around £60 for T-shirts, and jackets for £180.

Though an official release date has yet to be confirmed (the Instagram posts just say “Coming soon”), it's said the collection will be available “imminently”.