A prized painting by Francis Bacon could be sold at auction – to help a cash-strapped West Yorkshire council raise a potential £60m.

Sales from public collections are heavily frowned upon in the arts world, with some critics saying it betrays those who originally donated the items and deters others who might donate in the future.

But Kirklees council is considering selling the 1940s painting by the artist after it was recently forced to close two museums, with another closure on the way.

David Sheard, leader of the council, said the painting, Figure Study II, had languished in storage for years as it was too valuable to be exhibited locally.

He said: “I can’t see any value of owning a painting which is stuck in a cellar most of the time. I know recently it has been on tour, but there have been times where it has been in storage for a very long time.

Francis Bacon’s Figure Study II, which could be worth up to three times its estimated value of £19.5m. Photograph: Huddersfield Daily Examiner

“It is an issue that we need to have an open debate about as it is a problem if it is costing us so much to insure yet we’re not able to display it.”

The painting, which depicts a “screaming mouth and the eyeless face of a sub-human creature”, is the multimillion pound “superstar” of the borough’s art collection. Its companion piece, Figure Study I, hangs in the Scottish National Gallery.

However, senior council figures say that because it is expensive to insure it can only be exhibited within the secure environment of Huddersfield Art Gallery. Currently it is in the gallery’s vaults.

The Labour council leader’s comments come after London art experts said current auction prices meant the painting could be worth up to three times its estimated value of £19.5m.

Prices of Bacon paintings have rocketed since his death in 1992. In November 2013, a Bacon triptych depicting artist Lucian Freud fetched £90m, then the most expensive artwork ever sold at auction.

Some say auctioning the piece could fund Kirklees’ museums and galleries for decades to come.

Andrew Cooper, Green councillor for Newsome, said: “In the dire circumstances the council finances are in, we have to consider selling artworks that the council has. We have got to look at using any money that we realise from it to protect essential council services.”

However, Sheard said he would prefer to loan the painting to other museums and art galleries within the UK.

“That would be my preferred outcome because then we get the best of both worlds – we get to keep the painting and raise revenue. However, I need to know all the facts before any decision is made and will have to discuss options with the whole council,” he added.

The notion of selling the Bacon painting caused outrage among art lovers when it was first mooted by the Conservative group, in charge of the West Yorkshire council four years ago.

It was argued then that the millions of pounds raised could potentially fund the reopening of Dewsbury Museum and Red House Museum, safeguard jobs, and repair and revive Tolson Museum in Huddersfield.

But any potential sale could be blocked by the Contemporary Art Society, which gifted the painting to Batley’s Bagshaw Museum more than six decades ago. The society said the artwork is secured by a restrictive covenant that allegedly prevents it from being sold.

A spokesman said: “The painting was a conditional gift from the Contemporary Art Society and the conditions of the gift means that it cannot be sold. This is in line with the Arts Council’s museum accreditation policy.”

London art dealer David Messum said the painting could be worth double or triple its £19.5m valuation.

“There is big money around for Francis Bacon at the moment because a Francis Bacon is a prized possession,” he said. “There are one or two opportunities a year for these. It’s going to fetch a steep price and above estimate.”

In 2014, Northampton borough council was accused of a “moral crime against world heritage” after it sold an ancient Egyptian statue.

Members of the public and gallery staff examine the Northampton Sekhemka, an Egyptian painted limestone statue. Photograph: Leon Neal/AFP/Getty Images

The council’s decision to put the 4,500-year-old statue up for auction saw Northampton Museum stripped of its Arts Council England accreditation until 2019, rendering it ineligible for a range of arts and grants funding.

The statue was considered the jewel in the crown of the museum’s collection but was sold at Christie’s in July 2014 to an anonymous buyer for £15.8m. After its sale, the government put a temporary export ban on it in the hope a domestic buyer would match the sum to keep it in the UK.

But after campaigners failed to raise the funds to prevent its departure it reportedly went into a private collection in the US.

The statue, taken from the tomb of Sekhemka, the pharaoh’s inspector of scribes in Saqqara, had been donated to the museum in 1880 by the son of the second Marquess of Northampton who had brought it from Egypt.

The council put the statue up for sale to fund an extension to the museum, and the proceeds were split with Lord Northampton.

It has previously been claimed that Britain’s councils own artworks worth £2.3bn – but less than 2% are on public display.

Manchester city council was top with an art hoard worth £374m, followed by Birmingham and Southampton with £200m each, Leeds with £150m and Newcastle with £104m.