A long lost painting looted decades ago in Nazi occupied Europe has been recovered in Argentina, officials have said.

Portrait of a Lady, by Italian master Giuseppe Ghislandi, had been missing for 80 years before it was spotted last month on an estate agent's website, where a photo showed it hanging in a house that had belonged to the daughter of a Nazi fugitive.

Patricia Kadgien's late father Friedrich had been a top adviser to Hermann Goring, Adolf Hitler's deputy, who plundered thousands of works from across Europe.

Prosecutors said the artwork had now been returned by the lawyer of Ms. Kadgien, who was under house arrest after a search of her property initially failed to find the painting.

Ariel Bassano, an art expert who worked on the case, told reporters it was in good condition for its age, as it dates from 1710. He valued it at around $50,000, according to local media.

Prosecutors earlier said raids at other properties linked to the family had turned up other pieces that may have been stolen during the war. Ms. Kadgien and her husband had been ordered to remain under house arrest for three days, and were being questioned for obstructing the investigation to locate the painting.

The painting first spotted online was among the collection of Amsterdam art dealer Jacques Goudstikker, much of which was forcibly sold by the Nazis after his death. It is listed on a database of art stolen by the Nazis.

Peter Schouten of a Dutch newspaper reported that there was evidence the painting was removed shortly afterwards or after the media reports about it appeared. The couple insist they are the rightful owners of the artwork, which they had inherited, but legal proceedings are expected to follow.