The pot, which was due to go under the hammer at Willingham Auctions on April 21, is from the Tiwanaku region of Bolivia.
It is now set to be handed over officially at a small ceremony at the auction house on May 17.
The export of Bolivian antiquities has been illegal since 1906 when its National Congress passed a law that named the nation as the rightful owners of areas including the ruins of Tiwanaku. In the case of the object in question, the vendor inherited it from her deceased father and therefore lacked documentation proving it was imported prior to that date.
“I have been in contact with the Art and Antiques Unit at Scotland Yard and all are pleased we have managed to reach a satisfactory solution to an issue which affects many countries with items coming up for sale,” said the auction house’s Stephen Drake.
He added that the decision was made to gift the vessel to the Bolivian government in hopes that it would be placed in one of the country’s museums.
It was originally consigned to Willingham’s as part of the collection of Dr KA Joysey (1928-2012), a scientist and lecturer at Cambridge University and director of the Museum of Zoology. More than 180 lots from his collection were included in the recent sale.