A bag containing $200,000 worth of diamonds found on an Israeli street has been returned to its owners.

A diamond dealer dropped the bag in a road next to the Israel Diamond Exchange and it was picked up by a young ultra-Orthodox resident of Bnei Brak who handed the bag into the exchange.

The lost bag was then returned to its rightful owner.

"My father lost the diamonds when he was on the way to the polisher," said the son of the diamond dealer.

"We tried searching all over the area, we checked the security cameras, but this area was not filmed.

"They weren't our diamonds and we weren't insured. We would have had to take out a large loan in order to return the money if it hadn't been returned."

The young man who discovered the expensive lost property said that he never considered taking the package.

"I wasn't tempted for a moment to take it. I was brought up to believe that we don't touch anything that isn't ours," the unnamed man said.

The owner of the diamonds stated his relief that the bag was returned.

"I didn't believe that I would see the diamonds again. The man who returned it is a real tzaddik (a righteous man). I can't believe that there are people like that. I was pleasantly surprised."

The owner of the package gave the finder a sum of money to demonstrate his gratitude.