Although the council knew who took the patu, it would not be disclosing it as the council had pleaded for its safe return on a "no questions asked" basis.
However, the council confirmed at a press conference on Friday police had been notified of the return.
The patu was returned to the chambers by June Whareaitu, alongside Marcelle Morrison who carried a photograph of Mr Kingi.
Following a karakia, Te Arawa kaumatua Dr Ken Kennedy opened the event with a waiata before speeches from Pihopa Kingi, Rotorua Mayor Steve Chadwick and Te Tatau o Te Arawa chairman Te Taru White.
Pihopa Kingi said in the joy at seeing the patu returned he had to wonder why someone would take it.
"The act of stealing this patu now rests with each and every one of us," he said.
"There is good and there is bad in each and every one of us."
He described the patu as a symbol for everything Mauriora Kingi was, and everything that he did and said.
Mrs Chadwick said it was important for the ceremony to take place as quickly and appropriately as they could.
The patu paraoa will remaining at the council with extra provisions being made for its safety.
Mr White said it was best for the patu to remain there.
"Our little part of the world has a peaceful element, and this being returned is a symbol of the peace we need to continue advocating for," he said.
"This recognises our partnership with council, it is home."