Andrew Symonds was the highest-paid foreign player last year with $1.35m; that mark also looks set to be washed away.
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Pietersen is easily one of the most exciting batsmen in the world and has the ability to turn any match on its head with his dazzling strokeplay in the space of just a few overs, which makes him the perfect player for Twenty20 cricket.
His ability to smash sixes with his latest stroke 'the switch-hit' will also be something that Indian fans will be keenly waiting for.
There are already reports that his name will lead to a huge bidding war in the IPL auction and prices could touch the sky.
Many believe that Bangalore Royal Challengers are going all out to sign the England captain in a bid to bolster their team after their disastrous showing last year.