The 49-year-old singer bought the icon at a London art dealer in 1985 but didn't know where it had come from.
However the icon was stolen from the Church of Cyprus after the Turkish invasion and he is now planning to take it back to where it came from after keeping it safe for almost 30 years.
He said: 'I'm happy it is going back to its original, rightful home. I've always been a friend of Cyprus and have looked after the icon for 26 years.'
Many religious artefacts went missing from northern Cyprus after Turkey's invasion in 1974.