The boy, reportedly abducted from Manor Road, Arleston, Telford, at about 3pm is safe, West Mercia Police said.
It was reported that the child may be in the company of a white woman with dyed reddish brown hair, who is about 5ft 5in tall.
Neighbours said police had voiced fears that a “stranger” had come in off the street and snatched the child.
A police spokesman said earlier that a woman, between 30 and 40, at the centre of the probe had a lump under her nose and a gap between her front teeth.
She was last seen wearing an army green zip-up jacket and a small black bag over her shoulder.”
Police earlier carried out door-to-door in Manor Road this afternoon before the search was successful.