A painting stolen by the Nazis that was spotted in an Argentinian estate agent's advert has vanished, a prosecutor says following a raid on the home.

Portrait of a Lady by Giuseppe Ghislandi was featured hanging above a sofa inside a property near Buenos Aires, which was being sold by the daughter of a senior Nazi who fled Germany after World War Two.

A police raid on the house this week, however, turned up no painting - but two weapons were seized, federal prosecutor Carlos Martínez told local media.

Mr. Martínez said they were treating it as an alleged cover-up of smuggling, Argentinian daily Clarin reported.

The furnishings had been rearranged and the painting was missing when they raided the property. Evidence suggests the painting was removed shortly after its media coverage. A large rug has taken its place, according to reports.

This artwork was part of the collection of Amsterdam art dealer Jacques Goudstikker, whose collection was forcibly sold by the Nazis. Some of Goudstikker's works were recovered in Germany post-war and are now displayed in Amsterdam.

Documents indicated that the painting was in the possession of Friedrich Kadgien, an SS officer who fled Germany in 1945 and became a businessman in Argentina. His heirs have been approached regarding the painting, yet they have not been forthcoming.

Lawyers representing Goudstikker's estate have stated they will take all necessary steps to recover the painting, reaffirming their commitment to restore the legacy of the looted artworks.