The LP, which was released three weeks before he was gunned down outside his home in New York City in 1980, shows Lennon with his wife Yoko Ono on the cover, and features his autograph in blue ink over Ono's neck, along with a '1980' inscription.
Lennon signed the album for Mark David Chapman as he and Ono left The Dakota apartment building in New York for a recording session on December 8, 1980.
The crazed fan then stashed the souvenir in a large flower planter by the entrance of the building, near Central Park, and waited until the couple returned more than five hours later.
Chapman shot Lennon twice in the back and twice in the shoulder. He was pronounced dead 10 minutes later upon arriving at a local hospital. After the shooting, a building superintendent found the signed album and turned it into police to be used as evidence in the case, according to the New York Daily News.
Investigators returned the album, which still features Chapman's forensically enhanced fingerprints, to the man who had found it about a year after the murder, along with a letter of gratitude from the district attorney.
The rock and roll memorabilia has already been sold twice since 1999, and will go under the hammer again on Monday, November 23 at Goldin Auctions, according to TMZ, where it's projected to fetch up to $2 million ($1.5 million).
Chapman, now 65, has been denied parole 11 times since he became eligible for release in 2000. He remains in custody at the Wende Correctional Facility near Buffalo, New York.