The Hollywood actor bought the Tarbosaurus bataar fossil, a species thought to be similar to the Tyrannosaurus, in 2007 from a gallery in Beverly Hills, California for around $276,000 (£184,000).

U.S. authorities have been investigating the skull's origins and have asked to take possession of the item so it can be returned to Mongolia.

Cage has now agreed to hand the fossil over so it can be given back to the Mongolian government, according to Alex Schack, a representative for the actor, who confirmed the news to Reuters.

The Face/Off star, who reportedly outbid fellow actor Leonardo Dicaprio to buy the skull, was keen to help after hearing of the item's history.