The Pink Star is expected to sell for more than 60 million US dollars (£48.4 million).
The auction record is currently held by the Oppenheimer Blue, which fetched 50.6 million Swiss francs (£35 million) at Christie's in Geneva, Switzerland, last year.
At 59.60 carats, the Pink Star is more than twice the size of the Graff Pink - the 24.78-carat gem which holds the pink diamond auction record.
The Pink Star sold for more than 83 million US dollars (£52 million) at an auction in Switzerland in 2013, but is back on the market after the sale defaulted.
David Bennett, Sotheby's jewellery division's worldwide chairman, said: "At a time of unprecedented demand for the finest in coloured diamonds, I am delighted to be bringing this magnificent stone back to the market.
"The extraordinary size of this 59.60-carat diamond, paired with its richness of colour, surpasses any known pink diamond recorded in history."
The diamond is on display at Sotheby's London offices before its sale on April 4 in Hong Kong.
Mined by De Beers in Africa in 1999, the 132.5-carat rough diamond was cut and polished over a period of two years.