A newborn baby who was snatched from a Cape Town hospital 17 years ago has been reunited with her parents - and the alleged kidnapper arrested.

She was living just a couple of miles from her parents but the amazing discovery happened only after she attended school with her biological sister, and people noticed their similarities.

Police spokesman Andre Traut said a woman was arrested and appeared in court over the kidnapping at Groote Schuur Hospital.

In a 2010 interview, the girl's biological father said: "I'll never, ever give up hope. I can feel it in my gut - my daughter is out there and she is going to come home."

It was reported that police took DNA samples before making the arrest.

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