The 50 lambs reported stolen from a Marlborough property have been found merged with another flock on a nearby property.
Police said this morning they were investigating the theft over several months from Ashmore Valley Vineyard paddocks on Grahams Road in Fairhall.
They have discovered the sheep had escaped and merged with another farmer's flock.
The combined flocks had been moved to another property before the farmer realised the missing sheep were included.
Police would like to thank members of the public for their help.