The tape, featuring the song Radio Peace, was recorded on Jan 5, 1970 by four Danish boys who had succeeded in getting an interview with the couple for a local school magazine.
The tape, which the four are selling along with photographs from the meeting, will go on sale with an estimated price of between $31,500 (S$43,000) and $47,000, auction house Bruun Rasmussen said.
During the 33-minute recording, Lennon speaks about the couple’s peace campaign, his frustration with the Beatles image, and the length of his hair.
The recording also features the pair humming along to Christmas songs while dancing around a Christmas tree, and Lennon playing the guitar and singing Give Peace a Chance and Radio Peace.
Lennon wrote Radio Peace as part of the couple’s peace campaign because they wanted to open a radio station in Amsterdam under the same name.
Lennon and Yoko Ono arrived in northern Denmark in late December 1969 and stayed at an isolated farm for more than a month, according to the auction house.