The priceless collection includes a throne from India that belonged to Queen Victoria, as well as fans, tankards, statuettes, and furniture.
But sources close to the prince say he feels strongly about putting 'his money where his mouth is'. If successful, he will go on to urge other heads of state to follow suit.
A long-term supporter of animal rights charities, the Duke of Cambridge makes regular speeches imploring world leaders to adopt a 'zero tolerance' policy towards illegal poaching in the lucrative trade.
Vow: Prince William is on a mission to clamp down on the brutal murder of elephants, rhinos and tigers for ivory
pair released a multi-lingual appeal for people to condemn illegal poaching across the world.
At home in Clarence House, William is said to have ordered for all ivory items to be hidden from sight for years.
Speaking at a conference last year, the second in line to the throne said: 'The forces that are currently destroying some of the world's most endangered species are sophisticated and powerful, but this week we are seeing the creation of an equally powerful alliance, coming together to help fight them.'
The royal collection now under threat mainly consists of gifts handed to the Queen by leaders across the world.
Palace sources insist they were all acquired 'in full knowledge of relevant legislation'.
Family affair: He has been working for years with his brother Prince Harry and father Prince Charles to fight the trade
The princes have been over to Africa to survey the stockpiles of elephant tusks collated from gangs
The three appeared at the Illegal Wildlife Trade Conference in London on Thursday to address the matter
However, experts have hailed the suggestion as a powerful move that will have significant impact.
'It's difficult to imagine a stronger symbol of the horrors of ivory than Buckingham Palace publicly destroying its own,' Conservative MP Zac Goldsmith told the Independent on Sunday.
'Good for Prince William for pushing this.'
However, the move, the latest in a number of bids by the prince to protect elephants, has sparked outrage in the art world as experts claim destroying works 'of the highest order' is 'menacing'.
Royal collection: There are over 1,200 items in
the Royal Collection which are listed as containing ivory, including
this throne and footstool which comes from India and dates to 1850
Destroyed: This ornately carved cup and lid, and
this sword hilt, which both feature in the Royal Collection, would both
be ground to dust under plans from Prince William
This ivory cockade fan was made in 1790 for the then-Prince of Wales, and later King George IV
The royal collection mainly consists of gifts handed to the Queen by leaders across the world.
'Ivory was a treasured material that was worked on by craftsmen of the highest order during the Renaissance... It's pointless.
'I can't see the connection between saving elephants and destroying works of art made centuries ago.'
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