Fears for Melbourne missing boy Daniel Coverley

An urgent search is still underway for missing Melbourne boy Daniel Coverley, despite earlier reports he had been found.

Mooroolbark Daniel, 13, was last seen at a Lilydale address at about 2pm yesterday.

There are grave concerns for his welfare as he suffers from a serious medical condition.

Police earlier sent out a release saying the teen had been found safe and well, but have since retracted it.

Daniel has been described as slim, about 152cm tall, with fair hair and a rat tail down the back.

He was last seen wearing a red polo top, a grey jumper, beige pants and dark-coloured Nike runners. 

Daniel is possibly carrying a black Nike backpack with 'Nike' written on it in white letters. 

Anyone who sees Daniel is urged to call Triple Zero (000) immediately.

About midday Victoria Police mistakenly reported he had been found safe. That announcement was later withdrawn.