A London taxi driver has been praised for his "incredible honesty" after tracking down the owner of a £100,000 designer bag left in the back of his cab.

Hana Al Hai had left her Hermès handbag in Terry's black cab after he drove her from Mayfair to Knightsbridge where she was staying.

Terry had already travelled back to his home in Essex when he noticed the six-figure accessory in his black cab.

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"I didn't know it was a Hermès bag I just picked the bag up, took it inside, had a look inside and there was no phone in there or contact details just her cards and stuff like that," the taxi driver explained in a video to social media.

Hai was able to be reunited with the item after Terry's detective work led him to a phone number found inside the bag for the members lounge at Dubai Mall.

"[Hai] said would it be possible to take it back the next day but I had an appointment to see somebody the next day at 3pm, Terry said.

"She said I don't mind paying for you to bring the bag back because I can't spend any money, she said all my cards are in the bag so I'm a bit stuck for money.

"I took it back to her, got there, [she] paid the metre fare. There was money in the bag which I obviously took back to her as well."

Terry returned the bag after spotting it in the bag of his black cab

A video of Terry returning the bag to Hai has since gone viral on social media, attracting almost two million views on X.

Posting the clip to social media, the taxi driver said: "Returning back a 100k Hermes bag to a Arab lady after leaving it in my taxi, this is why we are the best taxi in the world just a shame our London mayor and government don’t think the same."

He was thanked for returning the bag with a cash tip - and was even offered a holiday to Dubai.

Terry said he was close to leaving his job as being a taxi driver in the capital city had become "challenging", but the response to his viral video had "blown him away".

The lost handbag was returned thanks to Terry's detective work

"Crazy how life goes because I was on the verge of leaving the trade out of pure frustration as most of us cabbies know getting around London has become very challenging," he said.

Hai has expressed her "heartfelt gratitude" to Terry for his "incredible honesty and kindness" in returning the designer item.

She posted to social media: "It’s rare to meet someone with such integrity and genuine care for others.

"Please know how much I appreciate the trouble you went through, and how deeply grateful I am for your actions.

"You turned what could have been a stressful experience into a reminder of the goodness in people.

"Thank you once again for going out of your way, I won't forget it."

To get hold of a Hermès bag, you can't simply walk into a shop but must instead build a relationship with a sales associate for the brand.

Celebrities including members of the Kardashian family are among those who have been spotted sporting the bags.

The Licensed Taxi Drivers' Association said in a statement: "London’s cabbies continue to set the gold standard in service and trustworthiness.

"This driver’s actions exemplify why black cabs remain the safest and most reliable form of transport in London."