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The painting, named "Shot Sage Blue Marilyn," is one of a series of portraits Warhol painted for the actress in the wake of her death in 1962.
The 228.31-carat pear-shaped gem, which was mined and polished in South Africa more than 20 years ago, is the largest white diamond ever to come to auction, said auction house Christie's.
A Christie's official said, "This is crazy. This is a new record for a Mona Lisa replica."
Napoleon is believed to have owned around 120 such hats in total over 15 years, most of which are now lost. "The hat in itself represented the emperor's image," auction house expert Jean-Pierre Osenat told AFP ahead of the sale.