The Codex Calixtinus was found in a garage near Santiago de Compostela and four people were arrested over the theft from the city’s cathedral.
The richly decorated book is considered the first guide for those following the ancient pilgrimage route to Santiago.
Police arrested a technician who worked at the cathedral and three relatives.
Christians believe the Santiago de Compostela cathedral to be the burial place of St James the Greater, one of Jesus’s apostles.
The manuscript was found after the technician and three members of his family were arrested on Wednesday.
Besides the Codex, police also found other valuable old books stolen from the cathedral and at least 1.2 million Euros in cash.
A replica of the Codex is on display in a glass case at the cathedral.
Only a handful of people had access to the room in which the original was kept. It is thought to date from around 1150.
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