The Madrid-born Oscar-winner has signed a three-year deal to front Loewe's campaigns, and will make her first appearance in the house's spring/summer 2013 ads, which have been shot by famed duo Mert and Marcus.
"Loewe is an international brand proud of its Spanish roots with a rich history behind," said Cruz. "Its collections are made by Spanish master artisans and I have always admired their work. I feel fortunate to be a part of this project."
The brand's creative director, British designer Stuart Vevers, said Cruz's "strong, sensual beauty" has long been an inspiration and a constant reference for his "ideal of Spanish womanhood".
"I always start with the woman and a character. I find film very useful as a fictional character can be liberating creatively," he told WWD . "Pedro Almodóvar's work is a constant reference and Penelope's characters in his films have often been an inspiration."
It is the latest in a growing line of fashion and beauty ventures for the 38-year-old actress, who is also a spokesmodel for Lancôme and L'Oréal. Just a few weeks ago it was revealed that she and her younger sister Monica have teamed up with luxury lingerie brand Agent Provocateur to design a diffusion line, L'Agence, and she has previously designed for Spanish high-street chain Mango.
By Bibby Sowray, Telegraph.co.uk