The Titanic was considered the most advanced vessel of its age, but critically lacked enough lifeboats for all its passengers and crew.
The discovery was made during an underwater scanning project by Magellan which captured 700,000 images of the wreck from two submarines. The images were then used to create the first-ever full-sized digital scan of the Titanic.
While studying the images, the megalodon tooth necklace, which also contains gold, was spotted.
The megalodon tooth necklace could not be taken from the wreck because of an agreement between the US and British governments that forbids such removals by members of the public.
The chief executive of Magellan, Richard Parkinson, said its discovery was “astonishing, beautiful and breathtaking”.
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The company now plans to find the owner of the necklace by using artificial intelligence to contact the family members of the 2200 passengers onboard the Titanic when it sank.
Footage of passengers boarding the ship will be analysed with the technology, including facial recognition and the clothes that they were wearing.
Megalodons were colossal sharks that lived an estimated 23 million to 2.6 million years ago.
From nose to tail, they are said to have measured around 16 metres in length.
Groundbreaking project gives never-before-seen view of Titanic