A four-year-old boy who spent a night outside by himself as people desperately searched for him, has been found safe and well several kilometres from his home.

Shinae Twist, a close friend of Axel's family, confirmed Axel had been found on Wednesday morning.

She says he was found 4km from his family farm near Tolaga Bay, East Cape.

Earlier, residents in Tolaga Bay left teddy bears and blankets out at their front doors overnight in the hope of enticing missing boy Axel out of the dark.

About 50 volunteers searched through the night without finding the 4-year-old, who went missing from his family home on Paroa Rd in Tolaga Bay, East Cape, around 1pm on Tuesday.

He was last seen with the family's small white dog, which was found overnight

Police had met with volunteers at the Tolaga Bay police station for a briefing early this morning.

In a statement released this morning, police confirmed Axel had been found.

"He was found at about 10.45am and has now been reunited with his family.

"Police would like to thank everyone who offered their assistance in searching for him."