The winning bidder for a Banksy painting that self-destructed during an auction last week has decided to go through with the purchase, auctioneer Sotheby's said on Thursday.

The auction house said a female European collector was the successful bidder, agreeing to pay £1.04 million for "Girl With Balloon." But just after the hammer came down, and to the shock of those in the saleroom, the bottom half of the work passed through a shredder concealed in the frame.

Sotheby's said the painting had now been retitled "Love is in the Bin" and authenticated by Banksy's Pest Control agency.

Alex Branczik, Sotheby's head of contemporary art, Europe, said: "Banksy didn't destroy an artwork in the auction, he created one.

"Following his surprise intervention on the night, we are pleased to confirm the sale of the artist's newly-titled Love Is In The Bin, the first artwork in history to have been created live during an auction."