World War One medallions found dumped near rubbish bins in suburban Melbourne have made their final journey home.

Victorian Police handing over the two medals to the family of the Tasmanian soldier who earned them.

Two large bronze medallions were handed into police after being found near rubbish bins at Ascot Vale in Melbourne's north in October.

Officers keen to learn more about the unusual find.

Vicki Key from Victoria Police said "In twenty one years of policing I've never had anything like these medallions handed in and so we realised that they had some sentimental value."

Investigations revealed the medals belonged to Tasmanian miner, Edward Kimberly who enlisted at the age of twenty two and was killed in France five months later.

Police then began the task of finding Kimberly's family - a search that led them here.

Ms Key said "We contacted births, deaths and marriages in Hobart, did a little bit of detective work and ended up coming up with the soldier's niece."

The World War One soldier's niece, Marlene Guy admits she was taken aback when contacted by the Victorian Police.

Mrs Guy said "I was astounded actually....I didn't know these medals existed.

"As far as I'm concerned they're going to be always in our family."

Mrs Guy says the medals have brought her closer to the uncle she never knew.

The only puzzle now is how the medallions ended up in Melbourne.

Ms Key said "As to how they came to be in Victoria, we don't know, it's one of life's mysteries....I'm just really pleased they've come home to Tasmania."

They'll now take pride of place on the wall of the Guy household in Mathinna.