ABC has reported that an unidentified woman with no known links to the thugs, who stole the pets during an attack on dog walker Ray Fischer, turned the dogs in to Los Angeles Police officials on Friday night.
The dogs were quickly reunited with Gaga’s team, while the singer remains out of the country, shooting a film in Italy.
The suspects, who shot Fischer during the dog-napping on Wednesday night, are still at large, and no arrests have been made.
Sources close to Gaga told TMZ she cried “tears of joy” when she heard Koji and Gustav were safe.
It’s currently unclear if and when the woman, who turned over the pets, will be rewarded. Gaga offered $500,000 (£359,000) – no questions asked – for the dogs’ return.
In a statement she released on Friday, Gaga hailed Fischer a hero.
“My beloved dogs Koji and Gustav were taken in Hollywood two nights ago,” she wrote, explaining: “my heart is sick and I am praying my family will be whole again with an act of kindness.”
“I will pay $500,000 for their safe return,” she offered. “Email KojiandGustav@gmail.com to contact us. Or, if you bought or found them unknowingly, the reward is the same. I continue to love you Ryan Fischer, you risked your life to fight for our family. You’re forever a hero,” she praised.
Fischer was hospitalised after the attack but is expected to make a full recovery.