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Nathanial Daily's father says police found his son in a ditch near Highway 1 after he had gone missing from their home the night before.

Portage la Prairie RCMP have found a missing three-year-old boy who disappeared from his home late Friday night.

Police said reports from a search team say Nathaniel Dailey was found near the Trans-Canada Highway about five kilometres east of Sidney, Man., at about 11:20 a.m. Saturday morning.

There is no word on how the child got there or where he spent the night.

"I'm told he was transported to hospital just as a precaution and for observation, but other than that, reported to be in pretty good health," said Cpl. Miles Hiebert with the RCMP.

The boy was last seen in his home in Sidney at about 10:45 p.m. CT and at some time after that reportedly walked out the house unnoticed, police said.

Hiebert said police searched all night and were optimistic Saturday morning that they would find the boy.

"These searchers that are on the scene now are very well trained and very capable," said Hiebert.

"Luckily there was no snow overnight and the temperature wasn't extremely cold. We're hoping that we'll find him very shortly or in the near future," he added.

At the time he went missing Nathaniel was wearing grey and blue "Tron" pants, a red long sleeve shirt and Spiderman socks.

Hiebert had asked earlier that the public stay away from the search. He said there were dozens of well-trained searchers and people without search and rescue experience could get in the way.

 Sidney is about 60 kilometres west of Portage la Prairie.