A rare Islamic gold coin, said to be the first of its kind to be auctioned, could be sold for more than £1 million when it goes under the hammer later this month.

The 6th century gold dinar dates from when the Umayyad Caliphate ruled from the year 660 to 750.

Coins from the period are common but the Arabic phrase inscribed on the dinar is said to be rare.

“Ma’din Amir al-Mu’minin”, meaning Commander of the Faithful, is associated with the formal title of the ruler of the Muslim community.

It was in use for around three years, according to the Classical Numismatic Group (CNG), which is organising the auction.

The company says it is the first coin from the years 711-712, corresponding to the 93rd year of the Hijrah migration, to come to auction.

The coin is estimated to fetch £700,000 but could go for more than £1 million, according to the CNG.

Stephen Lloyd, a specialist in Islamic coins at the CNG, said: “The small, remarkable Umayyad dinars… are small, beautiful, astonishingly rare historical documents.”

He added that evidence points to the coins being “only ever struck in small quantities, which is consistent with their great rarity today”.

The coin also refers to the sixth Umayyad caliph, Al-Walid I.

He conquered north-west Africa, Spain and lower Central Asia and built the Al-Aqsa Mosque in Jerusalem, the Prophet’s Mosque in Medina and the Great Mosque of Damascus.

The coin will be offered at CNG’s Islamic auction in London on October 27.