Girl With Balloon, which depicts a small child reaching up towards a heart-shaped red balloon, was originally stencilled on a wall in east London and has been endlessly reproduced, becoming one of Banksy’s best-known images.
Alex Branczik, chairman of modern and contemporary art at Sotheby’s Asia, said: “It is almost three years to the day since one of the most ingenious moments of performance art this century made auction history.
“It has been a whirlwind to follow the journey of this now legendary piece and to have it back in our midst, offering it tonight in the very room it was created by the artist.
“Banksy is no stranger to making headlines and this latest chapter in his story has captured imaginations across the world – we can only begin to guess what might come next.”
The seller of the artwork, who placed the £1 million winning bid on Girl With Balloon, previously described the shredding of the artwork as “surreal”.
They added that he became the “accidental – but very privileged – owner of Love Is In The Bin”.
In March, Banksy raised more than £16 million for health projects by auctioning Game Changer, a hand-painted image showing a young boy playing with superhero dolls.
While Batman and Spiderman are discarded in a bin, the child clutches a figure of a masked nurse wearing a cape.