"Obviously it is not easy to part with the trophies that symbolise all the tremendous effort, both physically and emotionally that it took to win Wimbledon on five occasions," the Swede said in a statement.
"However, I do need to have some long-term financial security for those close to me and now believe that the time is right for the trophies and rackets to pass to either a tennis collector or a suitable institution where they can be appreciated by a wider number of people."
The five silver gilt trophies will be sold on June 21 at Bonham's salerooms in London and are collectively expected to bring in between 200,000 and 300,000 pounds ($525,400).
The rackets, signed by Borg, are expected to fetch between 10,000 and 15,000 pounds each.
Borg used the first racket to defeat Romanian Ilie Nastase in 1976 and the second when he won his fifth in 1980 at the All-England Club beating John McEnroe in a dramatic five-setter, ranked as one of the best tennis matches ever.
"Even though the symbols of my victories are being sold, what I will always retain the knowledge that for such a long period I was the supreme world tennis champion," Borg added.
The financial situation of Borg, who turns 50 this year, is unclear.
After racking up $3.7 million worth of prize money and playing his last professional match in 1984, Borg entered the fashion industry.
His company Bjorn Borg Design Group crashed in 1989 and he is being sued for 11 million crowns by an old business associate, designer Lars Modin. They will go to court next month.
Borg still makes money off the branding of his name, most notably on a successful underwear line.
Photographs: Getty Images | Text: Reuters