The banknote was issued on July 28, 1825, in Cambridge

The �1 note was produced in Cambridge in 1825 and is expected to fetch �200 when it comes up for auction at Spink in London on Friday, 3 October.

The banknote was issued on 28 July, 1825, by the Cambridge Town and County Bank.

It is black and white and bears the names Hollick, Nash, Searle and Son - wealthy merchants of the time who may have been owners or directors of the bank.

Cambridge is one of the rarer ones Banknotes' expert Barnaby Faull

The auction house describes the note as "very good, presentable and rare."

Banknotes' expert Barnaby Faull said: "All the towns in this country used to make their own banknotes.

"They come in every week, but in 25 years I can't remember seeing another one of its kind from Cambridge.

"Cambridge is one of the rarer ones."

He added that in 1825, �1 could have been equivalent to about a week's wages.

Provincial banks in England and Wales continued producing their own notes until the 1840s and 1850s, when many of the merchants who owned them went bust and the banks closed.

Banknotes in England and Wales were then issued by the Bank of England alone.