The Swiss art gallery named as the sole heir of reclusive German art collector Cornelius Gurlitt is to accept his bequest of masterpieces which include works looted by the Nazis from Jews, a Swiss paper reported on Sunday.

Gurlitt, who died in May aged 81, had secretly stored hundreds of works by the likes of Chagall and Picasso at his Munich apartment and a house in nearby Salzburg, Austria.

The collection, worth an estimated 1 billion euros (0.78 billion pounds), contains an as yet undetermined number of works taken by the Nazis from their Jewish owners during World War Two.