Sailor's 'stolen' medals found in nightclub

MELBOURNE - A sailor who claimed his service medals were stolen on Anzac Day has faced a sobering reality: he actually lost them during a drunken night out.

The 36-year-old's missing medals and white hat have been found at a bar in Geelong, west of Melbourne, where the sailor had partied the night away for the Anzac Day long weekend.

Police had spent two days investigating the incident after the sailor reported them stolen.

"It's disappointing," Detective Senior Constable Simon Keogh told AAP on Wednesday.

"It's taken a bit of police time and all for no reason."

The sailor had woken up in the gutter with a bruised head late Sunday evening about a block from the war ship HMAS Ballarat, which had been docked at Geelong's main pier.

He had no memory of being attacked but noticed his medals and hat were missing.

Police had examined whether the medals and hat had been taken while he was unconscious or if someone had knocked him to the ground and taken them afterwards.

It turns out the man had simply passed out on his way back to the ship after a night of heavy drinking.

The medals had fallen off while he was still on the dance floor of Lamby's, a nightclub about 200 metres from the pier, and his hat had ended up with a bunch of girls.

A bouncer collected the medals and hat for safe keeping. They were subsequently handed over to police and then the navy.

The sailor left port on the warship on Tuesday.

- AAP