NEW details have emerged in a mystery case dubbed 'Australia's Madeleine McCann' as a cop has made a shocking claim about the foster mum involved.

The senior detective told a court the foster mum of William Tyrrell, who vanished from his foster grandparents' garden in 2014, knows where the boy's body is.

Three-year-old William was last seen wearing his beloved Spider-Man suit while playing hide and seek with his sister in Kendall, New South Wales.

Nearly a decade after his disappearance, no trace of him has ever been found and no one has been charged in connection with the case.

And now Detective Sergeant Andrew Lonergan told Downing Centre Local Court, he believes the woman knows where the boy's body is, 9News report.

He said: "I have formed the view (she) knows where William Tyrrell is."

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Barrister John Stratton SC, defending the woman, claimed police charged her for lying in a bid to pressure her.

"You are hoping to break her spirit," he said, to which Lonergan responded: "Our main objective is to find out where William Tyrrell is."

The court also heard details of a conversation between the woman and two police officers who alleged she knew where William was buried.

The court heard that the woman was told: "You will have to live with it. Today is the day you make a decision for William.

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"We understand decisions have been made for different people for different reasons.

"We aren’t guessing, we aren’t bluffing. We know why, we know how. We know where he is."

The woman- who cannot be named for legal reasons-appeared in court on Thursday,after she was accused of lying to the NSW Crime Commission about striking another child with a wooden spoon.

She has pleaded not guilty to the charge.

The court heard an audio from a listening device planted in her home which captured the alleged incident.

A child can be heard threatening to call the police before a woman tells them to "stand up" three times.

"Where'd you put the wooden spoon?" the woman can be heard saying before the child screams and cries.

In a later phone call with her husband, which was intercepted by the police the woman can be heard saying: "She's still going on about it."

The hearing continues.

William's former foster mum has also been charged with stalking, intimidation and another assault charge.

She is set to face a hearing next year alongside the boy's foster father who pleaded not guilty to charges of stalking and intimidation.

Little William mysteriously disappeared on September 12, 2014.

William’s foster parents denied any involvement in his disappearance.

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Investigators have vowed to continue their search for the missing boy.

William's biological grandmother previously told local news the investigation has been "shambolic".

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