Sotheby's estimates the instrument's worth at Ô£350,000-Ô£500,000.
The instrument was sold by Paganini's son, Achille, and eventually came into the possession of John Corigiano Sr., concertmaster of the New York Philharmonic from 1943-1966 and father of the composer. Corigliano sold the violin in 1957 to the individual, an amateur musician, whose family is now selling it.
The violin is labeled "Anno 1716 Carlo Bergonzi fece in Cremona [made in Cremona]."
According to Reuters, there are only 50 surviving violins by Bergonzi, who ranks behind the legendary Cremona violinmakers Josef Guarneri and Antonio Stradivari.
Tim Ingles, head of musical instruments at Sotheby's, told Reuters that because the violin had been played, it was not in perfect condition, which would result in a lowered price. "It is a players' instrument," he said, "and I would expect it to be played by or on behalf of whoever acquires it next Tuesday."