The Neil Lane designed sparkler is a hand-cut vintage diamond from the 1890′s and is a stunning 3.5 carats.
The Hunger Games star, “wants Miley to keep the ring. He wouldn’t ask for it back. Liam told Miley to keep it and do with it what she wanted. He told her to keep it as a memento of their love affair,” a source close to the situation told Radar.
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“When Liam bought that ring, he truly believed he would be spending the rest of his life with her. Now he realizes they are both just too young to be ready for such a big commitment.”
The couple was last seen publicly together at the Los Angeles premiere of his movie Paranoia on August 8.
Confirmation of the split comes after Radar’s exclusive report that Hemsworth, 23, and Cyrus, 20, were on a break, prompting their reps to confirm the news.
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However, speculation of a split ran high when Hemsworth was spotted canoodling with another woman at the Toronto Film Festival and was linked to ex January Jones in recent weeks.