Socialite heiress Paris Hilton has threatened legal action against a New Zealand company for plastering her face across a billboard with the word "vacant" stamped across it.

The reality TV star was left fuming when she discovered bosses at Media5 had used her image to advertise billboard space in Wellington, reports said.

Hilton's manager, Jamie Freed, claims the company doesn't have permission to use the picture and insists the star plans to settle the matter in court.

Adam McGregor, spokesperson for Media5, however, says the advert was designed keeping the actress' sense of humour in mind.

"(The poster is just) a bit of fun. Paris has a proven ability to laugh at herself. We assume that the agency has taken care of the rights to the image of Paris, but we will ask the question. We're not trying to offend anyone," said McGregor.