The abstract collage, which features dozens of brightly coloured printed pieces of paper, was the basis of his Pearson Tapestry – designed by the Edinburgh artist and sculptor and woven at the Dovecot Studios in Edinburgh in 1996.
Paolozzi – who died in 2005 aged 81 – gifted the signed collage to a colleague, whose family have now decided to part with it. The 34cmx47cm piece will be sold at Shapes' Fine Art and Antiques sale in Edinburgh.
Gavin Lindsay, senior auctioneer, said "It is extremely vibrant. All components have been cut out, arranged and stuck down to create this remarkable design."