Police in Australia have arrested a man in relation to the disappearance of Irish woman Jill Meagher.

Homicide Squad Missing Persons Unit detectives arrested the 41-year-old from Coburg earlier today.

He is currently in custody assisting police with their enquiries.

Earlier a man captured on CCTV footage which also shows the last-known images of Ms. Meagher urged others in the vision to come forward.

He is one of 6 people visible in the security camera footage which shows her walking down Sydney Road in Melbourne after leaving a bar in the early hours of Saturday morning.

Police are particularly interested in talking to a man in a blue hoodie who can be seen talking to her.

Her handbag was located in a laneway off Hope Street on Monday morning.

Police are still trying to ascertain whether the handbag was missed by police in the initial search or whether it was placed there after the initial search.

Jillian is described as being of a fair complexion, 165cm tall, slim build, long curly black hair and brown eyes.

She was wearing a blue dress, black jacket, black patterned stockings and high heels.

Lisa Macksimovic is a reporter with ABC News.

She has the latest from Melbourne.

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