Darcy Shea, 8, went missing outside St Cuthbert’s Primary School in Lightfoot Avenue shortly before 9am on Friday (May 27).
Police said they believed Darcy had been taken by a person she knew, but the woman did not have permission to take her.
Officers issued an urgent plea for the woman to come forward and asked anyone with information to call 999.
At around 3.20pm, police confirmed Darcy had been found “safe and well” in the resort.
“A 60-year-old woman has been arrested on suspicion of child abduction and is in custody," a spokesman for Lancashire Police added.
“Thank you to everyone who shared our appeals for information.”
During the height of the search, helicopters were spotted by residents circling the resort.
Police officers were also spotted carrying out searches on land in an attempt to find the pair.