MAYOR Ray Mallon has got his civic dignity back after his £40,000 ceremonial chain was found following an anonymous tip-off.

The solid gold chain was discovered only yards from where it was thought to have been stolen last week following a function at Middlesbrough Town Hall.

Police and council staff found it in a black plastic bag, hidden in a cupboard in the town hall's concert room.

Last night, it emerged the person behind the mystery disappearance may never be prosecuted. Police will review the case but may drop it now it seems as though it was a prank and not a crime.

Detective Sergeant Paul Richardson, the man in charge of the investigation, said: "We are in consultation with the council in respect of the entire incident and will be reviewing our decision in due course.

"We are pleased to have this valuable piece of local heritage back in the care of the authority.

"However, it must be said that whoever was behind the disappearance could have prevented a considerable waste of police time and resources by letting us know of its whereabouts a lot sooner."

Mr Mallon, who pioneered zero tolerance policing in the UK, claimed earlier this week that the disappearance was an "inside job" and said that he had come up with a "clear suspect".

And he does not want to let the matter drop.

Mr Mallon said last night: "I am delighted the chain has been recovered and hope the thief will be apprehended soon.

"I have no doubt the thief's motive was to cause embarrassment to Middlesbrough Council and myself.

"I believe he sensed the police were closing in and decided he better return the chain quickly."