A Bermuda banknote from the 1960s is expected to sell for thousands of dollars at an online auction next week.

The ₤10 pre-decimalisation bill, printed in 1964, was never circulated and is in almost mint condition.

Auctioneer Dennis Hengeveld, an auctioneer at California-based World Banknote Auctions, which is handling the sale, said that the bill was priced so high because of its rarity and good condition.

The banknote was rated at 64 on a scale of zero to 70 – almost perfect.

Mr Hengeveld said: “Bermuda notes are always popular, particularly with American collectors.

“There were only 300,000 of these notes printed before Bermuda switched from the pound to the dollar. That might seem a lot, but it’s not really.”

He added: “Apparently, the first 50,000 and last 50,000 of these 300,000 were not put into circulation.

“From the serial number, we think this note is from the first 50,000 batch.”

Mr Hengeveld said: “We don’t know if this one was saved by a bank employee.

“At the time, ten pounds was quite a bit of money and very few people could afford to hold on to them.”

The island note will be one of 400 lots to go under the hammer at World Banknote Auctions and has an estimated price tag of between $2,500 to $3,500.

Online bidding has already started and the rare note has already attracted a $1,500 offer – by far the highest price of the 425 lots in the auction.

Live bidding will take place on January 7.

The bill eventually found its way into the hands of an anonymous Canadian collector who has put it up for sale.

All lots are open for viewing, watching, bidding, and registration on the website worldbanknoteauctions.com.

Bermuda bank notes are prized by collectors.

A redesigned $2 bill was recognised by the International Bank Note Society as the bank note of the year in 2009

Mr Hengeveld said: “World paper money truly is one of the last frontiers in numismatics.

“For the past 15 years we have seen tremendous growth in the world paper money market, especially in the United States and Asia, as collectors discover the wide variety of paper money printed and used by nations from around the world.”