The sale – which is listed as ‘The Art of Divorce’ - is set to take place at Sotheby’s and will feature 223 of his most prized possessions, including a chariot from the film Gladiator.
Items such as watches, art and jewellery belonging to Danielle will also be included in the sale on April 7 - the couple's wedding anniversary and Crowe's 54th birthday.
Speaking to The Daily Telegraph, the gladiator star said the sale would be ‘cathartic’ and a way to ‘create space for the future.’
'We've been separated over five years now, our divorce should be finalised around the time of the auction. Just as we collaborate on the upbringing of our kids, it's easy for us to work together on something like this.'
A $100,000 yellow diamond ring which Crowe bought for Danielle while they were married, will also be up for sale.
'It was unbelievably expensive at the time. It wasn't a great gift because it was so expensive she's never wanted to wear it too much for fear of losing it or damaging it,' Crowe said.
Rare movie memorabilia including the amour Crowe wore in Gladiator as Maximus will go under the hammer.
The armour is expected to fetch $30,000, while a sword used in the film could sell for $4000.
A working chariot from the set of Gladiator will sell for between $5000 and $10,000.
The Dr Martens boots Crowe wore playing a neo-Nazi in Romper Stomper are also in the catalogue and are valued at $15,000.
A black Mercedes which was used at the couple’s wedding is also being sold.
The 1890 Italian violin Crowe used in Master and Commander as Jack Aubrey is also being sold. The instrument is valued at up to $145,000.
Sotheby's Australia chairman Geoffrey Smith estimates the sale could generate up to $3.6million.