Presenter and comedian Nick Hancock put the item up for auction at Sotherby's and having far exceeded its anticipated £60,000 price, the famous Stoke fan will donate a sum from the proceeds to the former winger's foundation.
"It's wonderful news, and shows the passion and remembrance the public still have for Pop," said Matthews' daughter Jean Matthews Gough in a statement on behalf of the family.
"It would have made Pop so happy; when you consider he thought the medal was originally lost, only to discover it had been found in the attic of a house he had lived in 40 years previously."
Next year is the centenary of Matthews' birth and his foundation, run by volunteers, has pledged to help more than 10,000 youngsters gain access to a high-class sporting experience in their local schools and sports clubs by raising £100,000.
Source: PA