The larger-than-life prop, which features the actor in his Baywatch swim trunks outstretched in a swimming position, was created for The Spongebob Squarepants Movie in 2004.
It has since been used in a Comedy Central Roast of the actor, and U.S. late-night Tv host Jimmy Kimmel even turned it into his desk while he interviewed actress Emma Stone on his show last Thursday (03Apr14).
The piece was to be sold at part of a Julien's Auctions Hollywood memorabilia event beginning on Friday (11Apr14), and was one of the key pieces in the auction, which also features items from the estates of Greta Garbo and Jonathan Winters.
But Hasselhoff has now made the last-minute decision to pull the item from the charity auction after taking note of all the publicity it was receiving.
Julien's Auctions president Darren C. Julien tells The Hollywood Reporter, "He thinks so much of himself that he pulled it."
The estimated sale price for the model was between $20,000 (£11,914) and $30,000 (£17,871) and it already reached $28,000 (£16,680) in pre-auction bidding.