The homicide squad will continue to search dense bushland for the body of three-year-old William Tyrell, who disappeared on the NSW mid-north coast five months ago.

The boy was last seen playing in his grandmother’s backyard at Kendall, south of Port Macquarie, in September.

Police discovered bones during their search on Monday afternoon – but tests confirmed they belonged to an animal.

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A large search failed to find any trace of the boy, who was wearing a Spiderman suit when he disappeared, and it is now thought he did not wander off and get lost, but was taken.

Police operating on a tip-off are searching for his body and further evidence about 20 kilometres from where William was last seen.

The search will be conducted in an area around Houston Mitchell Drive and Long Point Road in Bonny Hills over a number of days.

The area of dense bushland is just off the Pacific Highway, about 20 kilometres from Kendall.

New information from the public has sparked the latest search by the homicide squad, who have called in officers from the Riot Squad, Dog Unit and Water Police.

Police begin a grid search at the site at Bonny Hills. Photo: ABC

About 30 police and more than 10 police cars, vans and police rescue trucks are at the site near Bonny Hills.

Detective Superintendent Michael Willing said police were not ruling out the chance that they may find a body.

“There is always that possibility but we are searching for evidence at this point,” he said.

“The information is only general in nature.”

Police have spoken to a number of people about William’s disappearance, but no one has been detained or charged.

Detective Superintendent Willing has confirmed the most likely scenario to explain the toddler’s disappearance is that he was abducted.

“It’s led us to believe that the most likely scenario is that he was taken by somebody,” Detective Superintendent Willing said.

“There has been an intervention by a third party there.”

On Sunday, NSW Crime Stoppers appealed to 26 countries to help find the toddler.

Crime stopper websites have been asked to post information about William’s disappearance. New Zealand has already posted a photo and an appeal, with other countries including the US and Canada expected to follow suit in coming days.

Two weeks ago, investigators announced a plan to speak to anyone who came within a kilometre of the home between 10am and 11am on September 12.

This latest search is unlikely to be the last, the NSW Police spokesman said.

Last month police raided three properties linked to a local washing machine repairman, seizing a mattress, vehicles and a computer.

– with AAP, ABC