The Capitol Records compilation, which features a shot of the Fab Four dressed in butcher's smocks surrounded by raw meat and broken dolls, was snapped up by an anonymous American collector at the Beatles Story Museum in Liverpool, England.
The album hung on the wall of Lennon's New York apartment until he gave it to an avid Beatles fan and collector, named Dave Morrell. It's believed to be the only copy that features three Beatles' signatures.
"SOLD for £179,200! A Yesterday and Today album (1966) a U.S. First State Butcher, owned and signed by John Lennon with original artwork and addtl (additional) signatures! Sold today in our Music Icons: The Beatles auction!" a tweet from a spokesman at Julien's Auctions reads.
"The market is still developing, so we anticipate in the next five years this same record could bring $500,000-plus," Julien's Auctions president Darren Julien said. "This was a world record for a Beatles 'Butcher' cover and the third-highest price paid for a vinyl (album)."
Ringo Starr's copy of "The White Album" remains the highest-priced vinyl sold at auction - it went under the hammer for $790,000 (£607,000) in 2015.