Auction included designer's own creations

They ranged from 19th-century paintings to the designer's own creations such as a brightly coloured outfit featuring Hollywood icons Marilyn Monroe and James Dean.

The most expensive item was a painting by Antoine Dubost called Le Retour d'Helene.

It fetched $236,750, far surpassing the $150,000 pre-sale high estimate and setting a record for the artist.

Collectors from around the world attended the auction and thousands of people came to see the pre-sale exhibition in New York's Manhattan.

"People have an opportunity to see how Versace lived and what he surrounded himself with, and that generates excitement and creates a lot of new collectors," said Benjamin Doller from Sotheby's.

Gianni Versace was gunned down on the steps of his Miami mansion in 1997 by serial killer Andrew Cunanan.

The murderer later killed himself after a nationwide police manhunt.