The University of Sydney has been given Picasso's painting entitled "Jeune Fille Endormie (Young Girl Asleep)," a 1935 portrait of Picasso's young French lover Marie-Therese Walter, the BBC reported last week.
The donor, based in the United States, stipulated funds from its June auction in London -- where it is expected to bring between $15 million and $20 million -- must be used to fund research efforts in scientific fields.
The donor, requesting anonymity, flew to Sydney and presented the painting to the university personally last year, university vice-chancellor Michael Spence said in a statement.
Part of the proceeds realized would be used to fund research into diabetes, obesity and cardiovascular disease, Spence said.
Another Picasso portrait of Marie-Therese Walter, titled "Nude, Green Leaves and Bust, sold for $106.5 million in New York last year, the BBC reported.