An American man is being questioned by police in The Bahamas after officers allegedly recovered a luxury Rolex watch reported stolen from a hotel in Nassau in his possession.

According to police, the owner told investigators he left a gold Rolex Submariner, valued at approximately US$40,000, in a locker at a hotel on West Bay Street at around 2:30pm on July 8.

The man later returned after realising he had left his cellphone in the locker. When he opened it, he discovered the watch was missing.

Police said an investigation led officers to the suspect, who was allegedly found in possession of the watch.

The suspect was arrested, cautioned, and remains in police custody while investigations continue.