The green silk costume designed by Jean-Paul Gaultier sparked a bidding frenzy at the Christie's sale in south-west London and the final purchase price, including the buyer's premium, was 32,450 pounds.
The pre-sale estimate for the garment was 15,000 pounds, reported Daily Mail.
The 54-year-old wore the outrageous garment to perform three songs, including her hit 'Hanky Panky', on her 1990 'Blond Ambition' tour.
A black Lycra two-piece that she wore to sing her hit 'Vogue' went for 16,250 pounds.
The highest price raised at the pop culture sale was the 43,250 pounds paid for a 1947 painting of American actress Ava Gardner.
A prop from hit movie 'Skyfall' - a stone-effect plaque to the ancestral home of Daniel Craig's James Bond - went for six times its pre-sale estimate at 8,750 pounds.
A whip used by Harrison Ford in the Indiana Jones trilogy fetched 20,000 pounds, while a flamboyant pearl white sleeveless jumpsuit worn by Mick Jagger for the Rolling Stones' US Tour in 1972 fetched 20,000 pounds.
Covered all over with silver metal poppers backed by transparent sequins, the jumpsuit was designed by Ossie Clark.
Another Indiana Jones prop, a manuscript book known as the 'Grail Diary' raised 18,750 pounds.