Pedigree Texel ram lamb Double Diamond was sold at the Scottish National Texel Sale in Lanark on Thursday.
The lamb was sold by Charlie Boden and family from their Sportsmans flock in Stockport, Cheshire.
The price quickly escalated from an opening bid of £10,500 and the animal was bought by a three-way partnership between three farmers.
Jeff Aiken, flock manager at Procters Farm, one of the buyers, said: "He is the best lamb I have ever seen - so correct on his legs, bright, with a great top.
"He's got it all."
It is said to be the most expensive sheep sold in the world. The Texel Sheep Society said the previous record was £231,000 paid for a Texel, Deveronvale Perfection, in 2009. Texel sheep originate from the island of Texel, one of the north-western islands off Holland.