A rare teddy bear that was bought in 1908 and kept in the same family for more than 100 years, could fetch as much as £1,000 at auction.

The German Steiff bear was bought as a fourth birthday present for a little girl, called Olive, from a toy shop in Union Street, Plymouth.

The girl's father later told relatives he caught the tram to Gaylard's toy shop to buy the 2ft high bear, with has black boot button eyes, hump back and rich fur covering.

It has remained in the same family in the city ever since and Olive's daughter has now decide to sell it, though a second bear will be present at the sale, now belonging to Olive's grandson.

The for-sale bear shows signs of wear and tear and has lost much of its fur and has had its felt pads replaced, but it still retains the trademark Steiff metal trademark button in its left ear.

Paul Keen, auctioneer, said: "Although there is a high amount of fur loss such is the scarcity of these early Steiff bears that we expect it sell for between £500 and £1,000."

The Steiff factory started in 1880 when Margarete Steiff began producing a range of soft animal toys. Her nephew Richard joined in 1897 and the company gained worldwide fame after he created the teddy bear in 1902.

The trademark button was used from 1904 onwards and in 1907 almost a million of the bears were produced.

The bear will go up for sale at a specialist collectors sale at Plymouth Auction Rooms on January 15.