The treaty, which was a pact struck between Maharaja Ranjit Singh and Charles T Metcalfe on behalf of the British East India Company in 1809, is expected to fetch between 600 and 800 pounds.
It was presented to the British Parliament in 1818 and went on to define Indo-Sikh relations for a generation.
"We are honoured to be selling this rare document. The Amritsar treaty was very important in the foundation of the great empire Maharaja Ranjit Singh had built. We are also excited about the large number of rare Sikh books we have for sale," said Richard Westwood-Brookes from Mullock's auction house, which is organising the sale at Ludlow Racecourse in Shropshire on August 21.
Other key items coming up for auction include a large collection of rare and early Sikh books in English and Punjabi, mostly out of print and some dating back to the early 19th century.
An early watercolour of a Sikh Guru is also priced between 600 and 800 pounds.
A number of other historical documents and photographs relating to the Punjab will also to go under the hammer.
Mullock's specialises in the sale of rare documents and recently sold a collection of personal items belonging to Mahatma Gandhi, including his handwritten will, for an estimated 300,000 pounds.
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