The Kingston Flyer is up for mortgagee sale two years after the vintage steam train was last offered for sale.
The real estate agent managing the sale, Bob Muir of Ray White Real Estate, says the vintage steam engine did not sell in 2009 and has been listed on the internet auction site TradeMe with the price to be negotiated.
The Kingston Flyer began operating as a passenger service in the lower South Island in the 1890s and stopped running in 2009.
Kingston Acquisitions Ltd, which owned the train and 13 separate titles including land, rail lines and buildings, went into receivership in 2009.
Mr Muir says he has had intense interest in the auction from New Zealand, Australia and the United States.
However, Radio New Zealand understands from people closely involved with the Kingston Flyer that it has been left to rust in an uncovered shed and buyers would have to pay at least $1 million to get it going again.