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
Police investigating the alleged kidnapping of a British model in Italy have arrested the brother of the chief suspect in the West Midlands
Wet and windy weather travels eastwards through this evening and overnight.
Think you know who played 007 first? Who is the most bankable Bond? And what links Ian Fleming to Bob Marley and an under pressure PM?