Police have arrested a 48-year-old man over the disappearance of Victorian woman Karen Chetcuti, after pursuing his car following a kidnapping report this morning.

The 49-year-old mother of two was last seen in her home town of Whorouly, in Victoria’s north east, on Tuesday night.

Her burnt-out car was found 20 kilometres away on Thursday.

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Police said they received a report on Saturday afternoon that a man from Whorouly had been kidnapped and patrolling officers saw a car linked to that report at St Kilda, in Melbourne’s south, just before 5:00am.

Officers tried to intercept the vehicle at Reservoir, in Melbourne’s north, just after 5:00am, but the driver fled.

Police investigate a burnt out car in Myrtleford, believed to belong to Karen Chetcuti. Photo: Twitter

Police said the air wing followed the car before the man was arrested at Ringwood, in Melbourne’s east, about 6:00am.

Missing Persons Squad and Homicide Squad detectives are currently speaking to the man in relation to Ms Chetcuti’s disappearance.

He has also been interviewed in relation to traffic offences.

Police said they were “no longer looking for anyone in relation to the reported kidnapping”.

Police earlier declared a crime scene at the property of Ms Chetcuti’s neighbour, Michael Cardamone.

He had previously denied any involvement in her disappearance.

Police divers are searching wells on the missing mother’s property.

Ms Chetcuti was reported missing by a concerned friend on Wednesday at 9:30pm after she did not show up for work that day.

Following her disappearance, police found Ms Chetcuti’s purse and handbag at her home, but her mobile phone was missing.

Earlier this week, Detective Sergeant Sol Soloman from the homicide squad said her disappearance was out of character.

“She is described by people who know her as being very punctual, efficient, she’s very highly thought of,” he said.

“Local police went to her home and she wasn’t there. Her car was missing but it was discovered that there were lights on in the house and her handbag and purse were still there.”