A "priceless" edition of Shakespeare's works stolen 10 years ago was recovered after a man took the book into a US library, police have said.

The first folio edition, printed in 1623, was among a number of books and manuscripts taken from the Durham University Library in December 1998.

It is believed the Shakespeare book alone would have a market value of at least £15 million.

Durham Police said a 51-year-old man, claiming to be an international businessman who had acquired the volume in Cuba, showed it to staff at a respected Washington library and asked them to verify it was genuine.

He agreed to leave it with librarians, whose research revealed it to have been stolen.

The man was arrested at an address in Wigeon Close, Washington, Sunderland, after the British Embassy in the US alerted Durham Police to the find two weeks ago.

Police said a worldwide manhunt involving the Durham force and America's Federal Bureau of Investigation led to a raid on the Sunderland property last night.

The arrested man was taken to Durham City police station where he continues to be questioned, police said.

Detective Superintendent Andy Reddick, who is co-ordinating the inquiry, said the Shakespeare remains in the safe care of the Washington library.

He added: "A search of the house at Washington (Sunderland) began yesterday and that will continue today."

Several other rare literary treasures were stolen in the raid on the Palace Green Library.

Two hand-written manuscripts from the late 14th or early 15th century were taken; one bearing an English translation of the New Testament and the other containing a fragment of a poem by Canterbury Tales author Geoffrey Chaucer.

Books stolen included a first edition of Beowulf, printed in 1815, and two editions by the 10th century scholar Aelfric, one printed in 1566 and the other in 1709.

They were among more than 50 works on public display in two rooms of the library charting the progress of English literature from the Middle Ages to the 20th century.

A Durham Police spokesman said the works were described at the time as "a unique and irreplaceable part of the region's heritage" and would be virtually impossible to sell to legitimate buyers.

Academics from Durham University expressed their "excitement and delight" that the Shakespeare was recovered.

Bill Bryson, Chancellor of Durham University and author of an acclaimed book on Shakespeare, said: "This is not only wonderful news for Durham University but for all Shakespeare's scholars and fans around the world, of which I am most definitely one.

"Like Shakespeare himself, this book is a national treasure, giving a rare and beautiful snapshot of Britain's incredible literary heritage.
"I'll certainly be joining the crowds who will be eagerly welcoming it home."

The edition is in the care of the Folger Shakespeare Library in Washington DC.

At the time it was stolen, experts described it as "the most important printed book in the English language".

It was one of the first collected editions of Shakespeare's plays printed. Only between 200 and 300 copies are thought to have survived around the world.

The Shakespeare First Folio was acquired by John Cosin, former bishop of Durham, and was part of the library he established in Durham in 1669.

Vice-Chancellor of Durham University Professor Chris Higgins said: "Staff and the community felt a huge sense of loss when the books were stolen, so you can imagine my excitement and delight when I received the call from the police to say the First Folio had been found.

"Durham University is custodian of many priceless historic treasures, dating back to the medieval period.

"We are currently planning to make these available to staff, students and the public to enjoy on Palace Green, of course under a strict security regime. It will be wonderful to be able to include the Shakespeare First Folio in such displays again."

He added: "Our security has been very significantly reviewed and enhanced to the highest standards since the theft 10 years ago and we are confident the First Folio will be safe when it arrives back in Durham.

"We also very much hope that the other books stolen at the same time will be found soon so they can return to Durham too."