A 1,174-carat diamond has been unearthed in Botswana, a mining company announced on Wednesday, trumping another huge precious stone found in the country last month.

The latest find, which fills the palm of a man's hand, was discovered on June 12 by Canadian diamond firm Lucara and presented to the country's cabinet in the capital Gaborone on Wednesday.

"This is history in the making, for us and Botswana as well," said managing director Naseem Lahri, adding the diamond sits in third position among the world's largest diamonds.

Last month, Botswanan diamond firm Debswana said it had recovered the "third-largest" stone in the world at 1,098-carats on June 1.

The latest find solidifies Botswana as a leader on the world stage of the largest stones, accounting for six in the top 10 list.

The biggest diamond ever discovered in the world was the 3,106-carat Cullinan, found in South Africa in 1905.

Parts of that diamond adorn the British crown jewels.

President Mokgweetsi Masisi welcomed the "riveting moment" and the growing frequency of diamond discoveries in the country, promising that the southern African country will have a long-lasting legacy.

Botswana is Africa's leading diamond producer.

AFP