Sir Stanley Spencer, who was born and spent most of his life in Cookham, Berkshire, is probably best known for the series of artworks he created on the theme of resurrection.
The Resurrection of the Good and the Bad, finished in 1915, is the first piece exploring that topic and is an "immensely valuable" piece to use in the study of his work, the Department for Digital, Culture, Media and Sport (DCMS) said.
Bids for the painting, with a recommended price of £450,000, will be welcomed until mid-December.
