After Isildur's death the One Ring fell into the Anduin River. Almost twenty-five hundred years later, Déagol found the ring when fishing with Sméagol in the regions of the Gladden Fields. Sméagol demanded it as a birthday present, and on Déagol's refusal, he murdered him, taking the Ring for his own. Déagol's body was never found.
Déagol was of hobbit origins, specifically from the Stoor
branch, as was explained by Gandalf and recorded in the Red Book
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