11-year-old Michelle Levy has been found safe and well, two nights after running away from her North Bondi home.
The Bondi schoolgirl was found about 10.30am on Monday, in a unit in Mulwarree Avenue, Randwick.
It was reported earlier that she had been found in Surry Hills.
A woman who lives a few doors up from the Randwick unit block where Michelle was found said she watched as Michelle was reunited with her parents.
"It was very nice - they appeared happy," the woman said.
"I saw the police car and the parents and the girl and she looked all right."
"They were talking to the police."
Superintendent Jason Box, from the Eastern Suburbs Local Area Command, said a member of the public recognised Michelle on Monday morning and called her mother to say the girl was at the unit on Mulwarree Avenue. Michelle's mother then alerted police.
Superintendent Box said all indications were that Michelle was safe and well.
Detectives were interviewing her on Monday in a bid to find out where she had been since she left her family home on Saturday evening.
Superintendent Box attributed Michelle's discovery to the extensive coverage of her plight in the past few days, and thanked the estimated 1000 volunteers as well as police and State Emergency Service volunteers who had been out searching for the girl over the weekend.
"They have poured a lot of resources into locating Michelle and we would have not been in a position to locate her without their efforts and I thank them very much," he said.
"It's extremely pleasing to see that, when someone of such a young age, an 11-year-old, is missing, that it not only concerns the police but it's also a concern to the community, and the amount of time and effort they've put in was fantastic."
He said it was not clear whether Michelle had been assisted by other people in the days since she disappeared.
"She is only being spoken to by detectives at the moment, [who are] still trying to establish how she's arrived at that location [in Mulwarree Avenue] and if there were any associations with any other persons," he said.
Earlier, Michelle's parents, Adam and Anne Levy, left their home in Glenayr Avenue, North Bondi, to pick their daughter up with police.
"We are just so thrilled," her mother said.
"She said she was in good spirits and she just wants to come home.
"I don't think this would have happened so fast if it weren't for all the people out there."
"We are absolutely relieved, yes," Mr Levy said as he walked out of the house flanked by two detectives about 10.30am.
"She's been found - I am not saying where because I don't want her to be crowded."
Her mother said she had spoken to her daughter on the phone and was eager to pick her up.
"We would just like to say thank you to everyone who has been searching for her; we really appreciate the efforts you've gone to," she said.
Anne Levy posted a message to a Facebook page that had been set up to find Michelle saying: "She's been found! Going to fetch her now. Thank you everyone one and all!"
Hundreds of messages of relief and thanks were posted to the Facebook page just minutes after the news broke that she had been found.
"Best news all morning!!!!," wrote one person.
"I can't stop crying I am so relieved," said another.
"It's heartwarming to know that even in a world full of hate that there is still good people in this world willing to help without asking for anything in return. So happy she's found safe xx," wrote another.
Michelle left her home after a family argument about 6.30pm on Saturday.
Her distraught extended family and their friends spent Saturday night scouring the streets before calling in the police. She was spotted on security footage at Bondi Junction on Saturday and Randwick on Sunday.
By Sunday morning, a police hunt was well under way with officers from the Police Rescue Team and SES personnel searching the area, including the eastern beaches clifftops and waterways.
Up to 1000 members of the Bondi and Jewish communities combed the eastern suburbs on Sunday in search of the girl, whom friends have described as intelligent, shy, and "gentle as a butterfly".
Many were planning to reconvene in Bondi on Monday morning to plan the next phase of the search.