British investigators say the woman was allegedly seen close to where Maddie went missing in the Algarve resort of Praia da Luz on May 3, 2007, reports The Sun.
The stunning breakthrough comes just weeks after the investigation into the British child’s disappearance was given a last-minute lifeline.
After 10 years of dead ends the case was set to close this month before being granted $137,000 and a six-month extension after identifying a new person of interest in the case – now believed to be the woman in question.
Police have not yet said when the results of that interview will be made public.
Just yesterday, Maddie’s parents Kate and Gerry told The Mirror they still hold out hope she will be returned to them and still buy birthday presents for their little girl every year.
“I do all the present buying. I obviously have to think about what age she is and something that, whenever we find her, will still be appropriate so there’s a lot of thought goes into it.” the Mirror reports she said.
“But I couldn’t not, you know, she’s still our daughter, she’ll always be our daughter.
“Madeleine is part of our life, there’s photographs all round the house. Whether it be a birthday, family occasion or even an achievement or something, that is kind of when you really feel her absence.”
This article originally appeared on Starts At 60.