Egypt returned $500 million to Qatar on Monday the gas-rich state refused to renew the deposit it had made with Egypt's central bank (CBE) upon its maturity, an official at the bank told Reuters on Tuesday.

In November, the CBE returned a similar deposit to Qatar worth $500 million.

Qatar had deposited the funds with the Central Bank in late 2012.

In September, Egypt returned $2 billion that Qatar had deposited with the CBE, after negotiations to convert the funds into three-year bonds broke down.

Qatar sent Egypt $3 billion in May, of which it converted $1 billion into three-year bonds.

Qatar was one of the few Arab states to support Egypt during President Mohamed Morsi's one year in office but ties have deteriorated since the ouster of Morsi on July 3 following mass protests against his rule.