Police say they interviewed the suspect they had been seeking and it became clear she was dealing with mental health issues. She had been seen on security video.
The purse was taken Wednesday morning after it was left on the subway platform by a woman who jumped in front of a train at College station.
She was taken to hospital where she was pronounced dead.
Police had asked for the public's help in finding the woman who walked away with the purse.
Const. Victor Kwong says she was co-operative and police have used the contents of the purse to identify the deceased.
No names will be released.