An edition of Shakespeare’s first folio stolen ten years ago has been recovered after a British man took it into an American library to be authenticated.

The folio, printed in 1623 and valued at up to £3 million, was among a number of valuable books and manuscripts taken from the Durham University Library in December 1998.

Last night a middle-aged book dealer was being questioned by police after the discovery of other historic manuscripts at his house in Washington, Tyne and Wear.

Raymond Scott, 51, is alleged to have taken the Shakespeare folio to the Folger Shakespeare Library in Washington DC last month, claiming that he had acquired the volume in Cuba. He agreed to leave it with librarians, whose research found that it had been stolen. They alerted the Federal Bureau of Investigation, which told the British Embassy in Washington.

Times Archive, 1923: The First Folio

There are 36 plays in the First Folio and these have all now been performed at the Old Vic under the inspiring management of Miss Lilian Baylis

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Mr Scott was arrested by Durham police yesterday at the £95,000 semi-detached home he shares with his mother, Hannah. He was taken to Durham city police station where he was questioned and later released.

Several other rare literary treasures were stolen in the raid on the university’s Palace Green Library. The thieves forced open glass display cases to grab the documents just days before the end of an exhibition charting the progress of English literature from the Middle Ages to the 20th century.

Two handwritten manuscripts from the late 14th or early 15th century were taken, one bearing an English translation of the New Testament and the other containing a fragment of a poem by Chaucer. The books stolen included an edition of Beowulf, printed in 1815, and two editions by the 10th-century scholar Aelfric, one printed in 1566 and the other in 1709. A Durham police spokesman said the works were “a unique and irreplaceable part of the region’s heritage”, and would be virtually impossible to sell to legitimate buyers.

Other old books discovered at Mr Scott’s home will be examined by experts, although detectives said there was no suggestion at the moment that they included other items taken from the Durham library. Neighbours said five vanloads of books and photographs had been removed by police on Thursday and another three yesterday.

Police also took away a silver Ferrari belonging to Mr Scott. Neighbours said that he would wear wrap-around sunglasses and a dressing gown to wash the car and iron its seats before taking the bus into town to do his shopping.

George Atkinson, 59, said: “His dad, who died a few years ago, ran a bookshop with Raymond. After his dad passed away Raymond carried on the business, working from home. As far as I knew he sold expensive books over the internet. What was very strange was that he’s owned a string of flashy cars.

“He used to have a yellow sports car, then a Lamborghini and most recently he had a silver Ferrari with a personalised number plate. He used to clean them religiously. He would put on yellow Marigolds and scrub the cars and then iron the seat covers.”

As Mr Scott was being questioned academics from Durham University expressed their excitement and delight that the treasured Shakespeare folio had been recovered.

Bill Bryson, Chancellor of Durham University and author of an acclaimed book on Shakespeare, said: “This is not only wonderful news for Durham University but for all Shakespeare scholars and fans around the world, of which I am most definitely one.

“Like Shakespeare himself, this book is a national treasure, giving a rare and beautiful snapshot of Britain’s incredible literary heritage.”

Literary treasure

— The Shakespeare first folio stolen from Durham University’s library is regarded by academics as the most important printed book in English

— As the definitive anthology of his plays, it provides the basis for all subsequent collections

— An estimated 750 copies were published by the actors John Heminges and Henry Condell in 1623, only seven years after the playwright’s death. About 230 copies are recorded as “extant”, with more than a half in the United States. Fewer than 30 copies of the folio remain in Britain, including five at the British Library

— Value depends on the condition. A copy was sold in New York in 2001 for $5.6 million. In 2006, the British auction record of £2.8 million was set

— Durham University’s copy is in good condition but it had been rebound in the 19th century. It had been acquired by John Cosin, former Bishop of Durham, and was part of the library he established in Durham in 1669

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