Father David Lloyd's car was stolen from Gornal in the Black Country at the weekend with his pet Welsh Terrier on the back seat.
He later received a phone call demanding a ransom of £3,000 for the dog's safe return.
On Monday night two boys took the dog to a local police station after Father Lloyd's appeal on television.
They had looked after the dog - Rosa - after finding it wandering on wasteland in Tipton on Sunday.
Rosa has been Father Lloyd's constant companion since she was six weeks old.
He told BBC Midlands Today: "Everybody loves her. She comes into the church and greets everybody and if she can steal a glove, or scarf, she's very happy with that but there is no malice in her."
Speaking of the thieves, he said: "I can't do anything else but forgive them, can I?
"I can't carry them for the rest of my life for what they've done."