A £5MILLION Italian masterpiece bought by the National Gallery for £1.8 million thanks to a deal on death duties has gone on show after a year's restoration.

The work depicts the drawing of the state lottery in Rome by the painter Giovanni Paolo Panini.

He was as famous in his day for his views of Rome as Canaletto, his near contemporary, was for his work in Venice.

The new acquisition has gone on display alongside works by Canaletto and Guardi.

Dawson Carr, a National Gallery expert, said it would give depth to the gallery's great collection of Italian 18th-century works.

"Most of the very best works by Panini have left these shores. That is one of the reasons this was crucial for us," Mr Carr said.

"This was our best shot at having a Panini and I'm delighted we were able to plug this gap in our collection."

The painting was produced for Cardinal Domenico Orsini, a member of one of Rome's greatest and wealthiest families, probably in the early 1740s.

The work depicts one of the lotteries which were used to generate funds for the poor and the papal state. It is not known when the painting left Italy but it came to Britain from Russia with the imperial ambassador to the Court of St James in the early 20th century and was sold by his family to the dealer Thomas Agnew in 1934.

The family which sold it to the National Gallery in lieu of inheritance tax had bought it from Agnew in 1937.

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