Nai Yin Xue (left) and daughter Qian Xun Xue, who became known as 'Pumpkin'. Photo / US Marshals / NZ HERALD

Nai Yin Xue (left) and daughter Qian Xun Xue, who became known as 'Pumpkin'. Photo / US Marshals / NZ HERALD

Nai Yin Xue could be back in New Zealand within days, if US authorities agree to his immediate extradition.

A US Customs and Immigration officer, speaking on Sky News, said it was possible Xue could be back In New Zealand by next week, if US government officials could reach agreement with New Zealand police over his extradition.

Detective Senior Sergeant Simon Scott said Xue's extradition had to be completed within about 45 days, but he said extradition procedures were already well underway.

The Chinese martial arts expert was caught this morning, after five months on the run for allegedly killing his wife in Auckland, and abandoning his daughter Qian Xun Xue in Melbourne.

Madame Liu, who is looking after Qian Xun Xue, was told of the arrest this morning.

US police said he was busted when locals who recognised him hogtied the 53 year-old with his own trousers and belt.

There was no evidence of his purported martial arts expertise, police said.

Prime Minister Helen Clark says she was pleased and relieved that Xue had been arrested in the United States.

"My worst fear had been that this man would disappear into networks of contacts and never be seen again," she told NZPA today.

"To have an arrest like this, within six months, is considerable progress."

Xue is suspected of murdering his wife Anan Liu and stuffing her body in the boot of a car.

He took his three-year-old daughter Qian Xun Xue to Australia and abandoned her at the Southern Cross railway station in Melbourne, before heading to the US.

Qian was nicknamed Pumpkin by police, after the Pumpkin Patch clothing she was wearing when found.

Click here for a timeline of the events leading to Xue's capture

America's Most Wanted , the TV show which has featured the hunt for Xue, said residents of Chamblee, in Atlanta, Georgia, recognised Xue from media coverage.

They sat on him, tied his hands behind his back with his belt and pulled his trousers down to his ankles and knotted them so he could not run off, before calling police.

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