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NEW Zealand fugitive Nai Yin Xue, suspected of murdering his wife and abandoning his toddler daughter, has been arrested in the US.

Mr Xue is suspected of murdering his wife, Anan Liu, in Auckland last September and stuffing her body in the boot of a car.

He is also suspected of dumping his three-year-old daughter, Qian Xun Xue, who became affectionately known as Pumpkin, at a Melbourne train station.

"He was arrested in Atlanta," said Tom Hession, head of the Los Angeles US Marshalls, today.

Tipped off

Mr Xue had been living with members of the Chinese community in the southern US city and his acquaintances tipped off local authorities after seeing news reports about him.

"He was either associated with, or staying with some folks, who realised he was wanted and they called authorities," Mr Hession said.

Mark Johnson of Chamblee Police in Georgia said Mr Xue had been prepared for capture by his informers.

"They took matters into their own hands," he said. "When we arrived he was hog-tied with rope and duct tape."

Mr Xue had been charged with being a fugitive and for being wanted in New Zealand.

He was in custody while it was determined what legal jurisdiction he faces.

Deportation

Mr Hession told the New Zealand Press Association authorities hoped to deport him to New Zealand soon.

"But to tell you the truth, I don`t know when that`s going to happen," he said.

Victoria police said if Mr Xue was extradited to New Zealand and charged, police would decide whether to lay further charges in Australia.

Mr Hession said Mr Xue, 53, admitted who he was as soon as he was confronted by police at 6am (AEDT).

America`s Most Wanted

Mr Xue fled to Los Angeles and then disappeared after Qian Xun was left at the railway station last year.

Authorities in America had recently said they were closing in on the fugitive, and his image had appeared on America`s Most Wanted.

The last confirmed sighting of him was in Mobile, Alabama, where he introduced himself to residents as Peter Chung.

Authorities across the US, from Texas to the US east coast, were on the lookout for Mr Xue and his distinctive blue 1996 Thunderbird car.

Appearance

Radio New Zealand reported that he had been begging his way around Chinese restaurants and appeared "smelly and unkempt".

The abandonment of his daughter caused an outrage in Australia and New Zealand, and led to the establishment of the Little Pumpkin Trust in both countries.

The trust was created by Qian Xun`s half sister, Grace Xue, who was unaware she had a half-sister until the news broke that her father had abandoned the little girl and fled.

The trust raised $NZ40,000 ($34,000) for the little girl, who was taken back to China to live with her maternal grandmother.

Tony Edmonds, a spokesman for Grace Xue, said today he was trying to contact the Auckland woman, and a statement may be issued this afternoon.

Qian Xun was nicknamed Pumpkin after the Pumpkin Patch-brand clothing she was wearing when she was found in Melbourne.

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