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 newspaper La Capital Mar del Plata.

Ms Kadgien and her husband had been ordered to remain under house arrest for three days starting Monday, local media reported. They were being questioned for obstructing the investigation to locate the painting, according to a judicial official quoted in local media.

The couple insists they are the rightful owners of the artwork, which they claim to have inherited. Four other properties were searched in the hunt for the painting.

During these searches, two paintings and a series of drawings and engravings from the 19th Century were found at the home of Ms Kadgien's sister, La Capital reported, and would be analyzed to determine if they were items stolen during the war.

The painting was originally part of 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.

Authorities continue to monitor the case, as Kadgien and her family face potential charges linked to concealing stolen property connected to genocide.