The British Museum is to receive what is believed to be the highest-value gift ever received by a UK museum with the acquisition of £1billion (more than US$1.25 billion) worth of Chinese ceramics, BBC reports.

Trustees of the Sir Percival David Foundation, which owns the works, are to donate 1,700 pieces following a 15-year loan to the London museum.

The charitable foundation represents the late British businessman, who collected the items in Europe, Japan, Hong Kong and China, before his death in 1964.

Sir Percival David was born into a wealthy family in Bombay in 1892 and inherited a baronetcy from his father, as well as ownership of the family company.

The businessman moved to London in 1914 from where he began to collect large amounts of Chinese art and books.

Trustees of the Sir Percival David Foundation said he had wanted his private collection to be used to inform and inspire people.

After the donation is completed, pieces will be lent to the Shanghai Museum in China and Metropolitan Museum in New York as part of the British Museum's support of exhibitions worldwide.

The final transfer of ownership to the British Museum will be subject to the Charity Commission's consent.

The collection, created in the 3rd-20th centuries, has been exhibited in the museum since 2009.

The collection also includes a chicken cup used to serve wine for the Chenghua emperor and Ru wares made for the Northern Song dynasty court around 1086.

Now there are only 16 such bowls in the world created by order of the Chinese ruler.

Part of David’s collection is blue-painted cathedral vases from the mid-14th century, the earliest examples of this style.

The donation will make the British Museum's collection of Chinese ceramics the largest outside of China.