The Anglican Archbishop of Perth has described one of his own priests as "reprehensible" after he refused to return a $6500 bracelet to its owners unless they paid him half of its value.

Reverend Terry McAuliffe sparked a furious debate after finding the diamond bracelet belonging to Perth couple Clyde and Lesley Bevan, and claiming it as his own after two months when the owners could not be found by police.

After Rev McAuliffe tracked down its owner himself, he offered to return it - but only if the couple made an insurance claim and paid him half the value first.

That left the Bevans, who own Perth's well-known Friends restaurant, stunned and angry.

And it has also left the church embarrassed and apologetic, with Archbishop Roger Herft saying the priest was now facing disciplinary action and the possibility of being removed from his position.