Northern Territory Police believe a five-year old girl who was allegedly abducted from her outback home is still alive.

In an update on Tuesday (AEST), police said Sharon Granites was seen holding hands with her suspected kidnapper on Saturday night — the same night she disappeared.

Aboriginal trackers joined the search, which entered its third day on Tuesday.

Granites was reported missing from Old Timers Aboriginal town camp near Alice Springs on Saturday night.

Police believe she was taken by Jefferson Lewis, 47, who was staying at the same property as Sharon and went missing at the time she disappeared.

Lewis was recently released from prison and has a history of assault and domestic violence charges.

When asked if police thought Granites was alive, Assistant Commissioner Peter Malley  said “we do”, reports the NT News.

“That’s why at this stage our number one mission is to find her safe and well, but, as time goes on, the chances of finding her alive and well reduce, hence the amount of resources we have here in Alice Springs.”

Around 70 volunteers were assisting police, emergency services and defence personnel in the search across a wide area on Tuesday.

Helicopters, drones, dog units, horses, motorcycles and all-terrain vehicles have been deployed in the search, as well as a specialised infantry regiment of the Australian Army Reserve.

The local Tangentyere council has also been co-ordinating community volunteers.

Police believe five-year-old Sharon has been kidnapped.

Police did not believe Lewis had access to a vehicle or had left the territory, he said.

There had been a party at Old Timers Aboriginal town camp on Saturday night and police had attended but no offences had been detected.

Alcohol was consumed and Lewis was probably under the influence of alcohol on Saturday night, Malley said.

Police did not have a motive at this stage as to why Lewis may have taken Sharon, he said.

Sharon’s mother was distraught and police were providing ongoing support to her and the wider family.

Northern Territory Police told AAP the search area had been expanded to 20 square kilometres on Tuesday, radiating outwards from the town camp.

Police and volunteers are searching shoulder-to-shoulder through dense buffel grass.

Northern Territory senator Jacinta Nampijinpa Price backed police calls for the outback community to come forward with any information they had to help find Sharon.

“This is every parent’s worst nightmare,” she posted on Facebook, saying her thoughts were with the family.

“Police have now issued an updated call for information, confirming extensive searches have been conducted but she has still not been located.

“If you know anything — no matter how small — please come forward … let’s help bring her home.”

Major Crime Squad detectives from Darwin have flown in to Alice Springs to investigate as the search for the little girl continued.

-with AAP