Police are convinced someone in the tiny NSW mid-north coast town of Kendall knows more about the disappearance of William Tyrrell than they’re letting on as authorities focus on a dwindling group of potential suspects.

For the past fortnight, police have been searching bushland behind the Kendall home on Benaroon Drive, from where three-year-old William vanished in 2014 as he played outside in the garden.

On Wednesday, detectives unearthed fresh information about the case. That led forensic teams to zone in on a “very specific” patch of bushland about four kilometres from the primary search.

The new smaller search covers about 800 square metres and is a six-minute drive from William’s foster grandmother’s home.

The second search, which is looking for foreign items and “exhibits” relating to William’s disappearance, is expected to wrap up on Thursday or Friday.

AAP has learned the shortlist of high-priority people of interest has been steadily shrinking as the investigation and search efforts progress.

It’s understood detectives believe someone living in the area surrounding Kendall knows more about William’s disappearance than they have told authorities, sources told AAP.

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The revelation means police are still not convinced William’s disappearance was the result of an outsider, acting alone, venturing into the sleepy town of 830 people.

Since William’s disappearance, investigators have examined hundreds of persons of interest, investigated sightings and seized thousands of pieces of evidence but found no proven links to William.

The high-priority list of people of interest has dwindled down to a handful – but police remain tight-lipped about specific numbers and identities.

Detective Chief Inspector Gary Jubelin called on anyone who has seen suspicious activity in the area to come forward.

All available resources, including a cadaver dog and 50 specially trained officers, are working on the searches.

-AAP