The film, titled Charlie Chaplin in Zepped, features the legendary silent movie star bringing down a German Zeppelin aircraft and is believed to have been made as a morale boost for British troops in the early part of the 20th century.
It is the only known surviving copy of the film, and sold for just $5.12 (£3.20) on eBay in 2009. It is expected to fetch more than $160,000 (£100,000) when it goes up for sale at London auction house Bonhams next month.
Owner Morace Park says, "This film is an enigma. It leaves so many unanswered questions."