Police and SES crews were out again today, searching an area on the mid north coast… it’s understood that operation has now wrapped up.

Previously, a woman had told the William Tyrrell inquest that a convicted paedophile told two young boys that he killed William Tyrrell and buried him in a suitcase.

Frank Abbott is a person of interest in the disappearance of the three-year-old, who has not been seen since he vanished from Kendall on the NSW Mid North Coast in September 2014.

The woman, who cannot be named for legal reasons, told the court she was looking after two brothers for the first time when the younger boy made a disturbing allegation against Abbott.

"He said, 'I know who killed William'," the woman told Taree Court.

The babysitter said the boy told her Abbott killed William and buried him in a suitcase and that the toddler "was dead, but they hadn't seen the body".

She said the allegation came while all three were playing in a room and listening to William's song — Bring Him Home — which is from the musical, Les Miserables.

She said the older brother had then tried to silence the younger boy because he was scared.

"Did they say if they told anyone, that their mother's neck would be snapped?" Counsel Assisting Gerard Craddock asked.

"Yes," the woman replied.

The inquest heard the babysitter relayed the alleged conversation to her own mother, who reported it to Crime Stoppers before making statements to police.