Police in Melbourne have arrested a 41-year-old man in connection with missing Irish woman Jill Meagher.

Detectives had been hunting a man in a blue-hooded jumper who was seen on CCTV images with Meagher moments before she vanished in the early hours of 22 September.

Detectives said 29-year-old Meagher was last seen when she had drinks with friends and colleagues at a bar in the inner Melbourne suburb of Brunswick.

Detectives found her handbag on Monday not far from where she disappeared but police said it was possible that the bag may have been planted at the scene.

A Facebook page has been set up by Meagher 's family for members of the public to share information. Meagher moved from Ireland to Melbourne three years ago.