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The jacket, part of Elvis's uniform when he was posted to Germany in 1958, had been expected to go for up to �25,000.
It is now expected to be sold by private treaty after failing to make the undisclosed reserve at a sale of memorabilia at auction house Bonhams and Brooks in Chelsea, south west London.
At a press conference on his arrival in Germany in October 1958, Elvis leant against a window and coated the jacket arm in fresh paint.
He was swiftly issued with a new jacket and a member of the painting crew kept the stained one as a souvenir.
 There were several Beatles pieces in the sale |
The jacket is now owned by diehard British Elvis fan Johnny Earle.
The sale covered more than 500 pieces ranging from film memorabilia to up to-the-minute rock and pop material.
A rug which experts believed once belonged to Diana, Princess of Wales, was sold for �690, with proceeds going to Barnardo's charity.
Several items of Beatles memorabilia were sold at the auction.
Footage of the band filming Help! on Salisbury Plain in 1965 taken by a passing tourist went for �1,600.
Bottle stoppers with the heads of Sir Paul McCartney and George Harrison together went for �550 and an empty Beatles talcum powder canister fetched �290.
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