Pamela Anderson has allegedly reduced the asking price of her Malibu home by $2.75 million.

The former 'Baywatch' babe put her ''magical spot'' on the market in February for $7.75 million after a year of renting out the five-bedroom property, which she spent years renovating to turn it into an eco-friendly ''masterpiece'', but it now has a price tag of $5 million, according to gossip website RadarOnline.com.

The listing on Trulia.com states: ''This amazing home will awaken your senses and allow you to reconnect with nature while enjoying one of the finest homes Malibu has to offer.

''Walking distance from all things Malibu, this finely crafted, teak-sided home is perfect for the renter wanting to enjoy quiet, beach days while being close to the action.''

The Californian home holds plenty of memories for Pamela, who moved in after she married Motley Crue drummer Tommy Lee - who she divorced in 1998 - and afterwards with their sons Brandon, 16, and 15-year-old Dylan up until last year.

The lavish three-bathroom home features a sauna, luxurious swimming pool and a home cinema, which has been pre-programmed with the entire back catalogue of 'Baywatch' in which Pamela played lifeguard C.J. Parker in the 1990s.

The property also has several solar panels and environmentally friendly features, which are controlled by iPads positioned around the house.

In a piece about the house penned by Pamela last year, she wrote: ''I'm finally willing to share my masterpiece - what I've co-created with a handful of green architects and designers/inspired by my favourite architect Lautner - this is my humble stab at perfection. It's a magical spot.''

Pamela is reportedly preparing to move back to her hometown in Canada after she sells the property.