The auction house said the 9.54-carat "Fancy Deep Blue" ring was bought by Temple`s father in 1940 for $7,210.
Temple, one of Hollywood`s most popular stars in the 1930s, died in 2014 at the age of 85.
A private buyer bought the ring from her estate and is now putting it up for auction, Sotheby`s said.
It is estimated to be worth up to $35 million.
Temple pursued a career in politics after leaving the entertainment industry, serving as US ambassador to Ghana and Czechoslovakia.
A selection of her belongings, including a dress worn at the 1935 Oscars, has previously been auctioned off by her family.
Shirley Temple`s blue diamond ring up for auction
18 March 2016
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A diamond ring that belonged to former child star Shirley Temple is going up for auction next month at a starting price of $25m (
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