Sheikh Mohammed has paid 4 million guineas ($A7.58 million) for dual Oaks winner Dancing Rain who is in foal to Frankel.

The sheikh's bloodstock agent John Ferguson secured the mare for his boss with his only bid at the Tattersalls December Sale at Newmarket.

The five-year-old mare was trained by William Haggas to win the Epsom and German Oaks.

A daughter of Danehill Dancer, Dancing Rain was a renowned front-runner on the Flat and also claimed the British Champions Fillies' And Mares' Stakes at Ascot in 2011.

"This game is all about reducing the odds, and for us to get the greatest chance of producing a Classic winner, buying Dancing Rain reduces the odds," Ferguson said.

"You can have lots of mares, but you need jewels. Sheikh Mohammed felt that she's a jewel."