Green, 26, has played for Mumbai Indians and Royal Challengers Bengaluru in the IPL, scoring 707 runs at a strike-rate above 150 and taking 16 wickets in 29 games.
Although he was sold in the capped batters category, Green said he will be available as an all-rounder and attributed the listing to a “stuff-up” by his management.
Green has struggled with back injuries throughout his career and missed the 2025 IPL following surgery.
He returned to action as a specialist batter in June but is being used an all-rounder by Australia in the ongoing Ashes series against England.
England opener Ben Duckett will make his IPL debut after being picked up by Delhi Capitals for 2 cr (£167,000).
He was the only England player selected in the initial phase of the auction but four were picked in the accelerated rounds.
All-rounder Liam Livingstone was purchased for 13 cr (£1.085m) – the fifth-highest price of the auction – by Sunrisers Hyderabad, who will become the 32-year-old’s fourth IPL side.
Batter Tom Banton and left-arm seamer Luke Wood will join Jos Buttler at Gujarat Titans, while batter Jordan Cox was picked up for the first time by holders Royal Challengers Bengaluru and will play alongside Phil Salt and Jacob Bethell.
Sri Lanka seamer Matheesha Pathirana was the second-biggest earner of the day, signing for Kolkata Knight Riders for 18 cr (£1.5m).
Uncapped Indian wicketkeeper-batter Kartik Sharma and all-rounder Prashant Veer were both signed by Chennai Super Kings for 14.2 cr (£1.185m) in the next biggest deals.
Australia’s Steve Smith, England’s Jamie Smith and Jonny Bairstow and New Zealand’s Devon Conway and Daryl Mitchell were among the players unsold.