Woman arrested over Melbourne kidnap

A 20-year-old woman has been arrested over a kidnapping and armed robbery in Melbourne.

The Watsonia woman was arrested just before 4am (AEDT) after a police pursuit in the northern suburb of Reservoir.

She was taken to the Northern Hospital where she remains under police guard and is yet to be interviewed.

Police say the woman will be charged with kidnapping, armed robbery, threats to kill and theft of motor vehicle over the alleged kidnapping and armed robbery in Reservoir on January 3.

The victim, a 24-year-old woman from the northern suburbs, was found on the same day.

A warrant remains outstanding for the arrest of Coburg man Daniel Piccolotto, 26, over the same incident.

He is believed to be travelling in a stolen red 1999 Honda CRV wagon with registration PQT-696.

Anyone who sees him or the vehicle is urged to contact triple zero but not approach him as he may be armed.