A painting by Spanish artist Pablo Picasso, which was once withdrawn from sale due to links with Nazis, is to be sold by its current owner, composer Andrew Lloyd Webber.

The painting, The Absinthe Drinker, had originally been put up for sale in 2006, but was withdrawn from auction after a claim from the family of a deceased Jewish banker that he had sold it under pressure from the Nazi regime in Germany in the 1930's.

Christie's auction house has claimed the ownership challenge was resolved through agreement with all parties and the painting will now be sold on behalf of a charitable foundation established by Lloyd Webber.

The Picasso masterpiece, which was painted in 1903, is from Picasso's blue period and is expected to fetch up to $US60 million.

It will go on sale in London on June 23rd.