The late Beatles star bought the 1956 Austin Princess limousine in August 1971.
Auction house RM Sotheby's estimates the car will fetch a minimum price of £190,000 and a maximum of £265,000.
The car still features five aeroplane seats that were added by the star and it is believed to have been used in the making of a film to publicise Lennon's Imagine album which features the singer and wife Yoko Ono in the vehicle.
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The lucky buyer will also receive the original vehicle registration and title document, complete with Lennon's iconic signature from when he bought the car.
The Austin Princess was a popular model among celebrities in the 1950s and 1960s and The Beatles regularly travelled around in one.
The vintage vehicle was donated to the Austin Rock and Roll Car Museum in Texas in 2008 by previous owner Milton Verret.
It is now being sold to raise money for charity and some of the proceeds from the sale, which is set to be held at Battersea Evolution in south west London on September 7, will be donated to Unicef and Make A Wish America.
John Lennon was a member of The Beatles, alongside Paul McCartney, Ringo Starr and George Harrison.
After the band split up he had a successful solo career before he was tragically murdered in New York in 1980 by Mark David Chapman.
A guitar stolen from Lennon in the 1960s sold at auction for £1.6 million last year.
The Austin Princess is not the only celebrity car to be sold this year – but it will be one of the more expensive.
In April, patriotic motorists with £200,000 to spare were offered the chance to buy one of the Queen's old Bentleys.
The Bentley Mulsanne had clocked up less than 6,000 miles and was used to take Her Majesty to various engagements during her Diamond Jubilee celebrations in 2012.