This rare Chinese banknote was found in the head of this statue and will be auctioned on December 12. Picture: Supplied

The 700-year-old banknote from the Hong Wu period and the statue it was found in arrived in Sydney late Tuesday and will go on public display at auction house Mossgreen at Woollahra this Friday.

Stamped with three official red seals, the note is inscribed with a sinister warning for any would-be forgers that they would face beheading if they attempted to counterfeit it.

Mossgreen head of Asian Art Ray Tregaskis said the discovery of the note in the statue was thrilling.

The statue in which the Chinese banknote was found. Picture: SuppliedSource:Supplied

The Chinese banknote found in the head of a statue goes on show at Woollahra.Source:Supplied

“While it was not unusual for consecration items such a semiprecious stones or scrolls to be left within the base or the back of a sculpture, the discovery of this banknote is a rare and exciting one and, importantly, it verifies the date of the sculpture,” Mr Tregaskis said.

The note forms part of the Raphy Star Collection of precious Asian art to go under the auctioneer’s hammer — a collection worth an estimated $3 to $5 million.

A second collection of Chinese works of art and objects features bamboo and wood carvings from the early Qing Dynasty as well as rare bronze seals and small jade rarities.

The collection, which also includes a bronze Nepalese standing figure from the 9th or 10th century valued at between $150,000 and $200,000, goes on show from 10am this Friday until 5pm on Sunday ahead of the auction at Mossgreen, 36-40 Queen St, Woollahra, at 6.30pm on Monday, December 12.

Originally published as ‘$60,000 note’ found in statue head