The daughter-in-law of an influential Jewish art dealer whose property was seized during the Holocaust has agreed to a compensation deal over half a painting.

Marei von Sajer's lawyers said she had agreed to a settlement with the Hague authorities over "The Marriage of Tobias and Sarah" a painting by Dutch artist Jan Steen.

She will receive around £880,000 and in return the painting will be given to the Bredius Museum for public display.

However her claim was only for the left side of the painting, as the image was split into two fragments and only restored in 1996.

When Jacques Goudstikker fled the Nazis on a cargo boat in 1940 he left some 1,400 artworks behind. He did not survive the crossing and his gallery was looted by Goering.

Some 200 works were eventually returned to Ms von Saher in 2006 by the Dutch government; others remain lost or are the subjects of legal disputes with museums that are reluctant to give them up.