Four iconic screen prints by the cult pop artist were bought by the UK's Royal Collection to mark the Queen's Diamond Jubilee.
They will be displayed for the first time at an exhibition in Windsor Castle later this year, The Telegraph reported.
Warhol, who created the prints in 1985, once said: "I want to be as famous as the Queen of England".
The images formed part of a portfolio called Reigning Queens and are from the Royal Edition, which is sprinkled with 'diamond dust', fine particles of cut or crushed glass which sparkle in the light like diamonds.
The set is the 14th in the special edition of 30.
Another set from the same edition was auctioned by Sotheby's last week and was expected to fetch an estimated 1,50,000 pounds.
The photograph that was used of the Queen was taken in April 1975 by the late Reading-based photographer Peter Grugeon and later released for official use during the Silver Jubilee in 1977.
For the sitting, the Queen wore the Vladimir tiara, Queen Victoria's Golden Jubilee necklace, Queen Alexandra's wedding earrings and King George VI's Family Order, pinned to the Garter sash.
The set of four characteristically brightly coloured prints will form part of the exhibition The Queen: Portraits of a Monarch at Windsor Castle from November 23 until next June.