The Beatles icon signed the 'Double Fantasy' record for Chapman a matter of hours before he was shot dead by the crazed fan in Manhattan, New York, in December 1980.
Chapman stored the album in a large plant pot at the entrance to the Dakota apartments, before waiting for John and Yoko Ono to return to the building to carry out the fatal attack.
Chapman shot the legendary musician four times in the back as he made his way into the apartments, with the unique album being returned to an unnamed member of the public a year later, as well as a letter of gratitude from the District Attorney.
The cover and dust jacket of the record still feature the forensically-enhanced fingerprints of Chapman, thereby making it even more valuable.
The album was originally sold to a private collector in 1999, but the present owner has now decided to put the ''morbid'' item up for sale.
Gary Zimet, the President of US dealer Moments In Time, which is selling the record, said: ''In order to shoot John Lennon Mark Chapman had to stash his album somewhere and he hid it in one of the two giant planters on either side of the entrance to the apartments.
''A passerby saw the album in the planter pot later that night and handed it to the police who used it as evidence and gave it back to him a year later with a letter of thanks from the district attorney.
''The man, a Beatles fan, kept it under his bed for 18 years then decided to sell it.
''The current owner now decided to sell it as is their prerogative.
''It is arguably the most important rock and roll artefact in history, even if it is a little morbid.''
Sometimes actors are not acting.
We pay tribute to the Queen of Soul, Aretha Franklin, who passed away this week at the age of 76.
'Stage Fright' was released on August 17th, 1970.
We can't wait until the Fall for this gritty historic thriller.
From Robbie Williams to Olly Murs, these musicians are still football mad.
It's a far cry from The Beatles' 'I Wanna Hold Your Hand', but Paul McCartney has unveiled a risque new single entitled 'Fuh You'.
Which of Madonna's many hits do you think is the best?
A-list director Ron Howard worked with the surviving Beatles to assemble this engaging documentary, which...
In 1962 The Beatles were signed to a management deal with a local record shop...
In 1964, black and white music comedy 'A Hard Day's Night' was released, starring the...
Help Trailer Stop worrying...Help! Is on the way! Apple Corps Ltd have announced the eagerly...
The U.S. vs John Lennon Trailer StreamAn increasingly unpopular war and a restive public ....