The singer-songwriter has released a limited edition boxset of The Return of the Spectacular Spinning Songbook online, which includes a CD, DVD, vinyl EP and book, and is priced at £212.99.
He described it as "either a misprint or a satire", and suggested that fans should spend their money on a Louis Armstrong compilation instead.
"If you should really want to buy something special for your loved one at this time of seasonal giving, we can whole-heartedly recommend Ambassadors of Jazz by Louis Armstrong," he said on his official website. "Frankly, the music is vastly superior."
While he described his compilation as a "beautifully designed compendium", he added: "Unfortunately, we at www.elviscostello.com find ourselves unable to recommend this lovely item to you as the price appears to be either a misprint or a satire.
"If you should still want the component items in the above mentioned elaborate hoax, they will be available separately at a more affordable price in the New Year, unless you are one of those pirates who imagines they are evangelists or that other people's rights absolve their own thievery, in which case this is between you and your dim conscience."
Costello revived his 'Spinning Songbook' tour earlier this year, which saw audience members asked onto the stage to spin a wheel and choose a track from Costello's catalogue to be performed.
Tickets are available for the next batch of tour dates in the UK, Ireland and Europe from April to June in 2012.
Elvis Costello was one of the headlining acts at Australia's Bluesfest earlier this year.
Watch Elvis Costello perform 'I Still Miss Someone' below: