The Arts Council says there is little it can do to bring the Turnpike Lane Banksy back to Haringey.
The organisation made the announcement after Haringey Borough Council wrote asking for it to intervene in the sale of the mural, which was removed from the side of Poundland in Whymark Avenue.
The Arts Council says there is little it can do as the piece is less than 50-years-old and is therefore excluded from export control under current regulations.
A spokesman said: “We believe all art, whether viewed in a gallery, museum or in the everyday urban environment, should be valued – so it is a shame a piece of street art that is well loved by the local community has been removed for auction.
“We understand that Haringey Council is currently investigating how the removal occurred and we await the outcome of their investigation with interest.”
Yesterday the council also launched an online campaign on Facebook called Bring back Banksy calling on people to contact US Fine Art Auctions Miami where the mural is being sold and urge them to suspend the auction.