Two stolen Pablo Picasso paintings worth millions of dollars have been found in Serbia, Swiss broadcaster SF said citing a Swiss prosecutor.

The works, Tête de cheval (Head of a Horse), created by Picasso in 1962 and Verre et pichet (Glass and Pitcher), painted in 1944, were stolen from an exhibition in the town of Pfaeffikon, near Zurich, in February 2008.

The paintings were on loan from the Sprengel Museum in Hannover, Germany, at the time of the theft.

"I can tell you with pride and joy that after three-and-a-half years of investigative work we have located both stolen Picasso paintings," Schwyz cantonal prosecutor Charles Faessler told SF Friday.

Faessler said that Switzerland had officially requested Serbia to return the paintings, which had been found intact in a safe location.

However, he provided no information on the exact location of the paintings or possible suspects in the theft.

The Sprengel Museum had promised a reward for the recovery of the paintings.