The manuscript will be sold in a sealed-bid auction ending March 7, the Bonhams auction house said.
The song, which begins "I read the news today, oh boy," was inspired by the Daily Mail of Jan. 17, 1967, which included a story about the death of Tara Browne, the heir to the Guinness fortune and a friend of the the Beatles.
It was recorded for the band's album "Sgt. Pepper's Lonely Hearts Club Band" later that year, and is considered one of Lennon's and Paul McCartney's groundbreaking works of pop music.
The single sheet of handwritten lyrics includes the first two complete drafts of Lennon's contribution to the song.
It was last sold by the estate of Beatles road manager Mal Evans for $100,000 at Sotheby's in London in 1992, and is now being sold by the collector's family.
Bonhams, a British auctioneer with offices in New York and the West Coast, did not identify the seller.