A rare L. S. Lowry painting bought for £10 is expected to sell at auction for up to £1m.

Going To The Mill was purchased by Arthur Wallace in 1926 for about £780 in today’s money.

It is believed to be one of the earliest sales of the Stretford-born painter’s works.

Simon Hucker, from the Lyon & Turnbull auction house in London, said Going To The Mill was from a time when Lowry found his “unique voice” as an artist.

The artwork was originally bought by Mr Wallace, the Manchester Guardian’s literary editor, who used it to mark Manchester Civic Week, celebrating the city’s industrial success.

Going To The Mill is marked on the back as costing £30, but Lowry agreed to sell it for the reduced price of £10.

Recently on long-term loan to Pallant House Gallery in Chichester, the painting has been in the Wallace family for the last century.

Mr Wallace’s grandson Keith Wallace said: “Lowry said with great daring: ‘Could we say £10?’ and Grandpa wrote a cheque.

“Then Lowry wrote back to him saying: ‘I think I’ve charged you too much. Can I give you another one as well?

“So Grandpa got two Lowrys for his £10.”

In a letter to Mr Wallace from 1926, Lowry wrote: “Many thanks for your letter and cheque for £10.

“I am very glad Mrs Wallace likes the picture Going to Work and take the liberty of asking you to please accept The Manufacturing Town as a souvenir of the Civic Week.”

The painting is expected to sell for between £700,000 and £1m when it goes for auction at Mall Galleries.

Additional reporting by The Press Association.