Reijtenbagh is selling 39 of his paintings, including works by Picasso, Monet, Degas, De Chirico and Van Dongen, the news agency Bloomberg reported. The collection is expected to yield 40 million euros.

The most valuable piece is Van Dongen's Young Arab (1920), which is estimated at 10 million euros. The auction will take place on November 4 and 5 at Sotheby's in New York.

Reijtenbagh (1946) is a former family doctor from Amelo in the Netherlands who became a multi-millionaire by investing in the stock market. His art collection, which has some 90 valuable pieces, was seized by banks eralier this year after Reijtenbagh defaulted on several loans for which he has used the collection as collateral.

Monte Carlo Art, which manages Reijtenbagh's collection, said in a statement the investor has settled with his creditors, JPMorgan Chase & Co, Credit Suisse Group and ABN Amro, and all art works have been returned to him.

"This is the first forced sale of a large art collection since the crisis began," New York art dealer Franck Giraud told Bloomberg.

According to Bloomberg, Reijtenbagh previously sold some loose paintings at Sotheby's in London, where his daughter works.

There was some controversy over a painting acquired by the Rijksmuseum in Amsterdam prior to Reijtenbagh's financial problems. The bend in the Herengracht, by Gerrit Berckheyde, was subsequently claimed by two banks. An arrangement has been reached since, allowing the museum to keep the painting on display.