The photograph of the monarch, smiling, was taken at Buckingham Palace in March and commissioned on behalf of the government's Great Britain campaign.
The image will be used to support the campaign, which aims to generate jobs and growth by highlighting Britain as a world-class destination for trade, tourism, investment and education.
She is pictured wearing pearls, and a dress by Angela Kelly, who has served as personal assistant and senior dresser to her since 2002.
Over the course of his career, Bailey has snapped celebrities such as The Beatles, Diana, Princess of Wales and models Naomi Campbell and Kate Moss.
The photographer made his name working for Vogue magazine in the 1960s and has also photographed actors Jack Nicholson, Sir Michael Caine and Johnny Depp, the BBC reported.
The 76-year-old Bailey said: "I've always been a huge fan of the Queen. She has very kind eyes with a mischievous glint. I've always liked strong women, and she is a very strong woman."
The British monarchy is one of the biggest drivers of tourism in the UK, and brings in an estimated 500 million pounds a year from overseas tourism, according to Visit Britain.
The Great campaign is said to have delivered economic returns worth more than 500 million pounds with a further 600- 800 million pounds expected in 2013-14. It was launched by the prime minister in September 2011 and is used by Britain's diplomatic posts in 144 countries around the world, the Guardian reported.