Presley with the guitar at the Presley with the guitar at the 1973 ''Aloha from Hawaii'' concert in 1973 Image: Graceland

The guitar, which was gifted to Elvis from his father Vernon Presley in 1969, was expected to sell for up to $300 000 in the New York auction on May 21.

According to Julien's, Vernon customized the guitar with Elvis' name on the neck and had it finished in black to celebrate Elvis' black belt in karate.

Presley used the guitar during the landmark ''Aloha from Hawaii'' concert in 1973, which was the first televised performance to ever be beamed around the globe via satellite. 1.5 billion watched Elvis use the guitar to belt out his greatest hits.

The guitar was consigned by Mike Harris, an audience member at an Elvis concert in North Carolina in 1975. Elvis handed the guitar to Harris, and according to Julien's, said: "You keep the guitar. I gave it to you for a reason. Someday it will help you out," before Harris was given a police escort out of the venue.