German media reports are saying that 1,500 pieces of art, once confiscated by Nazis, were found in Munich.
Among the 1,500 pieces are works by Picasso, Chagall and Matisse that were either stolen or cheaply paid for from Jewish art collectors or deemed "degenerate," BBC News reports.
The artworks were supposedly discovered in 2011 by tax authorities as they were investigating an art dealer's son, Cornelius Gurlitt for tax evasion. A search warrant for his home turned up the discovery, Focus, a German magazine reported.
Of the 1,500 pieces of art, there are warrants for at least 200, it has been reported.
According to Businessweek, the artwork collection could be worth $1.35 billion.
The Berlin Free University announced that the school is involved in identifying the works through Meike Hoffmann of the degenerate art research unit.
Monika Tatzkow, a provenance researcher and author on Nazi-looted art, said, "The number of works is so overwhelming." If the artwork proves to be the real thing, "it shows that a lot of time has to pass for some of this art to emerge from shady sources."
Steffen Seibert, German Chancellor Angela Merkel's spokesperson, said, "The federal government is supporting the Augsburg prosecutors with experts of so-called degenerate art." Seibert added, "Of course we can't comment on the investigation. The government has been kept informed of this case for several months now."