The SS Gairsoppa, a UK cargo ship sunk by a German U-boat in 1941, was found by US exploration firm Odyssey Marine.
The firm will retain 80% of the cargo’s value under the terms of a contract with the Department for Transport.
The vessel was on its way back to England from India when it ran low on coal in stormy weather, and tried to divert to Galway harbour, but it was spotted and sunk by the German U Boat.
Three members of the crew survived in a lifeboat and reached the Cornish coast two weeks later, but two died trying to get ashore.
The wreck of the 412ft ship was found this summer nearly 4,700m below the North Atlantic, 300 miles off the Irish coast, but it was only confirmed as SS Gairsoppa last week.
Odyssey Marine’s senior project manager, Andrew Craig, said: “We’ve accomplished the first phase of this project – the location and identification of the target shipwreck.
“Now we’re hard at work planning for the recovery phase.
“Given the orientation and condition of the shipwreck, we are extremely confident that our planned salvage operation will be well suited for the recovery of this silver cargo.”
SS Gairsoppa settled upright on the seabed with its cargo holds open, which means remote-controlled robotic submarines should be able to retrieve the bullion.
Odyssey’s chief marine archaeologist Neil Dobson said: “Even though records indicate that the lifeboats were launched before the ship sank, sadly most of her crew did not survive the long journey to shore.
“By finding this shipwreck and telling the story of its loss, we pay tribute to the brave merchant sailors who lost their lives.”
The merchant ship belonged to the British India Steam Navigation Company, and was ordered into the merchant navy fleet at the outbreak of World War II.
Now, why does Gersoppa, ring a bell
? Well, it happens to be the highest waterfall in this part of the world not very far from here at Bangalore.
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