"The Tales of Beedle the Bard" is one of six copies the author produced to give as gifts to those who helped bring the story of the boy wizard to life, and is seen fetching 300,000-500,000 pounds ($378,000-$630,000) at Tuesday's sale.
A seventh copy was produced for a 2007 auction to raise money for the author's charity, Lumos, raising 1.95 million pounds.
[arve url="http://www.reuters.com/assets/iframe/yovideo?videoId=370666072" align="none"/]
"The Tales of Beedle the Bard" is a volume of five wizarding fairy tales left to Hermione Granger by Albus Dumbledore in the final book in the "Harry Potter" series, "Harry Potter and the Deathly Hallows".
The manuscript being offered for sale was presented to Editor Barry Cunningham who signed Rowling and published her magical debut "Harry Potter and the Philosopher's Stone" and contains a personal dedication from Rowling.
"This one has an inscription to Barry, thanking him," said Sotheby's books and manuscripts specialist Philip Errington.
"It says, 'To Barry, the man who thought an overlong novel about a boy wizard in glasses might just sell', which is a lovely little insight into the role of author and editor."
[caption id="attachment_39172" align="aligncenter" width="634"]
A copy of "The Tales of Beedle the Bard", handwritten and illustrated by Harry Potter author JK Rowling, is displayed at Sotheby's auction house in London, Britain December 8, 2016. REUTERS/Eddie Keogh[/caption]
Bound in brown Morocco leather, the copy is adorned with silver ornaments with a skull in the centre and has seven mounted rhodochrosite stones, according to Sotheby's.