EXCLUSIVE: Elizabeth Taylor's $8.8 million 'Taj Mahal' heart-shaped diamond - gifted to the star by Richard Burton on her 40th birthday - to hit auction block AGAIN after her estate and Christie's settle vicious dispute

Hollywood legend Elizabeth Taylor's 'Taj Mahal' diamond could be yours - for the right price.

The extravagant 40th birthday gift given to the actress by her then-husband Richard Burton will once again hit the auction block following a recent settlement in the bitter legal battle between Liz's estate and Christie's auction house, Daily Mail Online can reveal.

New court documents obtained by Daily Mail Online show that earlier this week the two parties reached a deal to dismiss all claims against each other and the Taj Mahal diamond will be put up for auction, fetching, it is hoped - at least $8.8 million, the auction price last time around.

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Battle: Elizabeth Taylor's estate filed lawsuit against Christie's after auction house returned money to anonymous buyer who paid $8.8 million for the Hollywood legend's jewelry

The gem sold for $8.8 million in December 2011 at an auction of the legendary star's jewelry collection in New York. But Chrisrie's canceled the sale at the buyer's request and asked for the $7.2 million paid to Taylor's estate. It refused. 

The Taj Mahal diamond got its name because it was believed it had belonged to Shah Jahan who commissioned the Taj Mahal monument in Agra in India.

In presenting it to Taylor in 1972, Burton famously quipped: 'I would have liked to buy her the Taj-Mahal but it would cost too much to transport.'

The heart-shaped diamond pendant on a 20th century Cartier gold neck chain set with rubies and diamonds was expected to fetch between $300,000 and $500,000 at auction but an anonymous buyer ended up bidding more than 20 times its estimated value.

But the buyer later asked for a refund alleging the jewel hadn't actually belonged to a Mughal emperor.

Taylor's estate responded by claiming the sale cancellation violated Christie's own policies and that the auction house never guaranteed the diamond's age or Mughal origins.

The trustees, who include Liz's son Christopher Wilding, blasted the auction house for returning the millions to the buyer saying they had no obligation to do so. Further, the trustees claimed Christie's failed to account for five other items sold from Liz's estate, including one of the actress' Bulgari rings.

All dolled up: Elizabeth Taylor wears the 'Taj Mahal' diamond given to her by fifth husband Richard Burton  in 1972 (left) and then again during an event in March 1999 (right)

Timeless: Richard Burton bought the heart-shaped diamond pendant, set with rubies on a 20th century Cartier gold chain for Elizabeth Taylor while they were married . This is the 'Taj Mahal' diamond necklace showcased at Christie's Auction House in December 2011

They filed suit demanding the return of Liz's gem, the profits made from the sale of the five unaccounted items and all accounting records for the auctions' sales plus damages for the breach of their contract

Christie's fired back at the estate's allegations calling them nonsense. 

It explained the auctions they held for Liz Taylor's items were incredibly successful and pulled in over $180 million for the estate.

Furthermore, the auction house says it did not breach the agreement with the estate but that it's the other way around. 

Christie's claimed the estate refused to hand back the $7.2 million it paid  for the sale of the diamond gifted by Burton.

It explained the agreement states that if a buyer backs out of a deal - they have no obligation to enforce the sale - and the profits must be made back to them. 

Christie's said the estate attempted to unlawfully keep the millions despite their contract specifically stating the rules of a failed sale. It asked that the suit be dismissed an the money returned to Christie's.

Steamy on screen: Taylor and Burton began an extramarital affair on the set of Cleopatra. They married in 1964, making him Elizabeth's fifth husband

Hollywood glamour: Richard Burton and Elizabeth Taylor at The Taming Of The Shrew in 1967. The diamond he purchased for her will be back up for auction per deal reached with Taylor's estate and Christie's

Now, months later, both parties have agreed to work together to sell the 'Taj Mahal' diamond but before any sale they both have to agree on the sale price.

Court papers state: 'Plaintiffs have agreed to a dismissal of their lawsuit without prejudice, with a tolling agreement in place between the Parties until April 2016.'

Richard Burton showered Liz with precious jewelry throughout their tumultuous relationship.Their romance was one of the most documented of all time with the media following their every move.

The couple met on the Rome set of the lavish epic Cleopatra and embarked on a tempestuous love affair even though both were already married to other people.

In 1964 Butron became Liz's fifth husband and the marriage lasted for a decade.

But just 16 months after their divorce, the couple reconciled and re-married in 1975. They broke up and divorced again in 1976.

During their time together, the Welsh actor showered Taylor with diamonds and jewels, amassing a staggering collection that the actress got to keep as part of their divorce settlements,