Two dogs who were found deceased after their distraught owner offered a $5000 reward for their safe return reportedly died in a tragic accident. 

Owner Julia Miley earlier told the Otago Daily Times a dog walker returned her white bichon, Teddy Bear, and black beardie cross, Rory, at about 11.30am on February 11, putting them behind the second set of gates on her Dalefield property. 

A friend who arrived at her property at about 3pm that day rang and said they were missing, despite the gates being shut. 

In an update on her Facebook post on Monday, Milley said the dogs had been found. 

"Sadly my babies have been found and unfortunately are both deceased." 

Miley commented that the pain of losing them has been unimaginable. 

But she said they had learnt the truth about what happened, describing it as a "tragic accident." 

She would not comment further on the matter. 

"We are not the only ones hurting right now. Rory and Ted will never be forgotten and thank you to everyone for their love and support." 

The Otago Daily Times reports Miley has had the dogs for nearly nine years, Teddy Bear regularly accompanying her to her CBD gallery, while Rory would run around her property. 

''If they ever got out, they'd go to the neighbours, they'd never go any further. 

''They are both nine years old, desexed, placid and microchipped.'' 

Milley earlier said she would have offered an even greater reward for their return if she could afford to.