The medal - won as a teenager at his first World Cup - was estimated to be worth between £70,000 and £140,000.
The three-time World Cup winner is selling all three of his winner's medals at auction, along with more than 2,000 items of personal memorabilia.
His winning medal from the 1962 World Cup in Chile was sold for £140,800.
The memorabilia, which includes shirts and trophies, is being sold over three days and his winner's medal from the 1970 World Cup, where he was part of the Brazilian team regarded as one of the greatest in history, has yet to go under the hammer.
A one-off Jules Rimet trophy made for the former striker after Brazil's triumph in Mexico in 1970 is the most expensive item being auctioned, with an estimated price tag of £281,000 to £420,000.
On the first day of auction, the boots worn by Pele in the classic football film Escape to Victory sold for £8,025.
Other items sold include L'Equipe athlete of the century trophy with book (£20,480), his 2007 Fifa presidential award (£30,720) and a 1,000th goal tribute crown with book (£162,500).
Pele is the only player to have won the World Cup three times and is regarded by many as being the greatest footballer in history, scoring 1,281 goals in 1,363 matches and appearing 91 times for Brazil.
Pele's 1958 World Cup winner's medal has been sold at auction in London for £200,000 - at least £60,000 more than its estimated price tag.