A father and grandmother to two young children have been arrested on suspicion of kidnap and attempted child abduction.
Police had appealed for information after two-year-old Na'llah Khan and her 10-month-old brother Sulailman Khan were taken from a hotel room in Stoke-on-Trent on Friday.
But the children were found safe and well in a guest house near Derby town centre at around 7pm today.
Their mother and wider family have been informed and the youngsters are being supported by specially trained officers before being re-united, police in Staffordshire said.
The children's father, Saleem Tahir, 40, and 67-year-old grandmother, Denise Smith-Sellars, both from Nottingham have been arrested on suspicion of kidnap and attempted child abduction.
The pair have been taken into custody where they will be interviewed by detectives.
More top news
Some 26% of online shoppers complained of poor delivery service.
Salisbury has been named among the top 10 cities in the world to visit by travel guide Lonely Planet.
Adverts targeting benefits claimers will remind them to notify authorities of any changes - or face a criminal record.