The gold medal had been removed from the stands at the Melbourne Cricket Ground on Friday afternoon after it was taken by a man wielding a crowbar.
But the man who stole it has been captured.
The incident occurred just after 6pm when the match was played between the Australian and Indian team.
The woman, a 19-year-old from Perth, was carrying the medal in a bag when she was approached by two men who had stolen it, police said.
One of the men approached her and tried to take the medal away from her, but she pulled out a crow bar to stop him.
The two men fled the scene.
One man was later arrested and the other was arrested and interviewed by police.
The man has been described as being of Indian descent.
“He was obviously quite nervous,” Victoria Police Detective Superintendent David Smith said.
“The police were obviously concerned for his safety and wanted to make sure that he had a clear path to get the medal back.”
The medal had just been awarded to Australia in a women’s cricket match on Friday night.
The medal was removed from a woman carrying the gold medal on her arm, after she was confronted by two individuals who tried to steal it from her.
Victoria Police are investigating the theft.
Police said it was not known if any charges would be laid.
“This is an unfortunate incident and an opportunity for the community to come together and express their support,” Victorian Police Commissioner Mick Potter said.
The gold was on display on a stage, in front of the Melbourne cricket ground, when the incident occurred.
It was on the first day of the 2017 Australian Women’s Cricket League (AWCBL) season and it was the first time the trophy had been stolen from the stadium.