The Monegasque royal is selling 38 models, which will go under the hammer on July 26 at the Museum Terrasses de Fontvieille in Monaco.
CLICK ON PHOTOS FOR GALLERY
Vehicles being sold include Prince Rainier's Mercedes 500 SEC which was one of his favourites.
An impressive Porsche 928 S, which is expected to fetch £312,000, is also up for grabs.
The late principality ruler (below) was passionate about cars, and assembled a fleet of 100 models over 30 years before his death in 2005.
Albert said of the Principality's association with motors: "The princes of Monaco have always been passionate about motor cars. Prince Pierre initiated the Grand Prix in 1929, and competed in it, in a Torpedo.
"My father, Prince Rainier, took over the development of the race, which has today become one of the most prestigious events in the world.
"He also supported the Historic Grand Prix, which was established in 1997 and has enjoyed enormous success.
"Together, we established a private collection of classic cars which is particularly close to my heart. I now wish to add some new models to the collection."