Pablo Picasso's Sylvette has become the most expensive painting ever sold at auction in Australia.

The brightly coloured portrait sold for $6.9 million at an auction in Sydney.

Kensington's Deutscher-Menzies Gallery had estimated the work would go for between $5 million and $7 million.

The previous record for a work sold at auction in Australia was set last year, when Brett Whiteley's The Olgas For Ernest Giles fetched $3.48 million.

Read the full story about Sylvette by Picasso at ABC News Australia