A Pablo Picasso painting has been bought by a hedge fund manager for a record $155m (£102m) - making it the most expensive of the Spanish artist's works.

Steve A Cohen bought the oil painting of Picasso's mistress Marie-Therese Walter, titled Le Reve, from casino mogul Steve Wynn, Sky News reported citing The New York Post.

Cohen and Wynn, who are both billionaires and well-known art collectors, have a history with this particular Picasso painting.

In 2006, Wynn put his elbow through the canvas while showing it to several friends, reportedly a day after agreeing to sell it to Cohen for $139m (£92m).

The portrait is said to have been completed in one afternoon in 1932 when Picasso was 50 years old.

The price tag is thought to make it the most expensive Picasso ever, according to reports. It is the third of the artist's works to sell for more than $100m.

Nude, Green Leaves and Bust sold for $106.5m in 2010 and Garcon a la Pipe for $104.2m in 2004.