Det. Cam Hawrish said Edmonton police received a tip that helped them locate the woman and child within about two hours of the alert being issued Tuesday morning.
"Shortly after one o'clock we got a phone call from a citizen," Hawrish said. "The two subjects that were listed as missing have been located and they're safe."
Police had been concerned that the mother was planning to leave Canada with the baby and return to China.
They said the woman had a stroller, baby supplies and a large suitcase with her.
Officers had originally responded to a report of an alleged abduction Monday night around 7:45 p.m.