Kandinsky's 1909 abstract yellow-and-blue village scene, Studie zu Improvisation 3, is estimated to fetch up to $20 million, along with another famous work by Pablo Picasso - Deux personages (1900).
Russian-born expressionist Kandinsky's Fugue was until recently the most expensive Russian painting, Sotheby's said, selling for $20.9 million in 1990.
However, a painting by another avant-garde Russian artist, Kazimir Malevich, this week sold for just over $60 million in New York.
Despite fears that the art market is facing a downturn, the first day of the Sotheby's annual art sale in New York this week fetched over $200 million. Recent art sales have shown that investors are looking at the market as a safe haven for their millions.