A handmade quilt depicting scenes from 14th century Chester is to be returned to the city's cathedral.
Police thought a tramp may have stolen the quilt
The 6ft by 5ft quilt, made by American artist BJ Elvgren, is worth about £13,000 and was stolen on 25 May, when the building was full of visitors.
Cheshire Police said the tapestry was found in a raid at a house in Penmon Close in Blacon. A 17-year-old man has been arrested and bailed.
Police thought it had been stolen to order or used by a vagrant.
It was due to be handed over to the vice dean of the cathedral on Tuesday.
The design for the quilt was inspired by a visit to the Chester Mystery Plays in 1992.
Chester Mystery Plays board bought the artwork and presented it to Chester Cathedral, where it has since been on permanent display.
The quilt was on show near the Cathedral Arch, where the original medieval plays were first performed.
The plays are medieval dramatisations of the Bible stories which portray God's intervention into human history.