The Austin Police Department tweeted the good news about Sailor Tucker just after 5:30 p.m. Wednesday.
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While information about how and where she was found was not disclosed, the police department said she was located with the help of the U.S. Marshals Office.
A 22-year-old woman, whom authorities earlier described as a suspect tied to the reported abduction, was taken into custody.
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Jessica Skelton, who is the child's biological mother, was detained on unrelated charges.
Police had said Sailor was last seen Tuesday night and that she was in danger.