An Australian special forces explosives detection dog has been found after going missing in action in Afghanistan 14 months ago.

Sabi, a four-year-old black labrador, was returned to the Australian base at Tarin Kowt after an American soldier found her wandering in a remote area of the southern province of Oruzgan last week.

The US soldier, named only as John, knew that his Australian counterparts had lost their canine companion during a gun battle between Australian, US and Afghan special forces and Taleban insurgents in south east Afghanistan last September. Nine Australian soldiers, including Sabi’s handler, were wounded during the assault and Sabi went missing.

Sabi, who was on her second tour of duty in Afghanistan, was officially declared missing in action. It is not known how she survived the past year, presumably eluding the Taleban, before being discovered by the soldier, who realised that she was not a stray dog because she understood certain commands.

Her trainer made sure that the dog was Sabi with a tennis ball test.

“I nudged a tennis ball to her with my foot and she took it straight away. It’s a game we used to play over and over during her training,” the trainer said. “It’s amazing, just incredible, to have her back.”

Trooper Mark Donaldson, a recipient of the Victoria Cross who is currently in London after a meeting with the Queen, was at the battle where Sabi went missing.

“She’s the last piece of the puzzle,” he said. “Having Sabi back gives some closure for the handler and the rest of us that served with her in 2008. It’s a fantastic morale booster for the guys.”

Yesterday Sabi was feted by US General Stanley McChrystal and the Australian Prime Minister Kevin Rudd, who met the dog during an overnight trip to visit the troops in Afghanistan.

“Sabi is back home in one piece and [is] a genuinely nice pooch as well,” Mr Rudd said.

The Government is now working on returning Sabi to Australia after a period in quarantine.

Dogs have become loyal companions to the thousands of troops stationed in war zones around the world.

In August British soldiers were saddened to leave behind Sandbag, a sandy-coloured retriever who had been born on the base at Umm Qasr in Iraq, after Downing Street turned down a request to repatriate the pet.

Last year US Sergeant Gwen Beberg created headlines with her campaign to take a stray dog back to America when she returned home from Iraq. Sergeant Beberg had rescued Ratchet from burning rubbish in Baghdad.

Sabi is the first dog known to have become lost in battle — and returned home.

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