Phillips, along with Jayda, 11, Maverick, nine, and Ember, eight, were spotted from a distance by a 16-year-old pig hunter, according to local media.
They were wearing camouflage gear and large camping backpacks – while the fugitive father was also reportedly seen holding a gun.
The foursome have been missing since December 2021, when police say Phillips took his children to an “unknown location”.
The children’s mother Cat said she was overjoyed by the sighting but also “overwhelmed” – as she called on Phillips to hand himself in to the police.
She told the New Zealand Herald newspaper: “It doesn’t get any easier… It’s been nearly three years.
“It was like Christmas come early and I really thought they would be coming home this time.”
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Image: The children’s mother Cat said the response to the sighting had been too slow. Pic: New Zealand Police
However, after Phillips and the children were spotted on Thursday, police are yet to locate them despite deploying a military helicopter and other resources.
Cat hit out at the official response to the sighting, describing it as “lacking”.
She added: “More should have been done, instantly… How can there not be more effort put in?
“It’s a confirmed sighting and yet nothing has come of it.”
Earlier this summer police offered $80,000 (£37,000) for information about the missing family members, although the deadline for the reward has now expired.
Since 2021 there have been numerous sightings, including in November 2023 when a suspect thought to be Phillips was caught on CCTV stealing a quad bike from outside a rural home.
Police also suspect he was involved in an armed robbery of a bank in Te Kuiti in May 2023, with officers later issuing a warrant for his arrest.
Image: Tom Phillips. Pic: New Zealand Police
Detective Inspector Andrew Saunders said: “While we cannot go into detail, we want to reassure the public that we have the resources in place to respond to any information or reports of sightings that come in.
“Our focus is very much on the safe return of Jayda, Maverick and Ember to their whānau [family] and we are doing all that we can to make that happen.”
Donald Trump has agreed to send “top of the line weapons” to NATO to support Ukraine – and threatened Russia with “severe” tariffs if it doesn’t agree to end the war.
Speaking with NATO secretary-general Mark Rutte during a meeting at the White House, the US president said: “We’ve made a deal today where we are going to be sending them weapons, and they’re going to be paying for them.
“This is billions of dollars worth of military equipment which is going to be purchased from the United States, going to NATO, and that’s going to be quickly distributed to the battlefield.”
It comes as Ukrainian president Volodymyr Zelenskyy said he had a “very good conversation” with Mr Trump late on Monday. He thanked him for the “willingness to support Ukraine and to continue working together to stop the killings”.
Weapons being sent from to Ukraineinclude surface-to-air Patriot missile systems and batteries, which the country has asked for to defend itself from Russian air strikes.
Mr Trump also said he was “very unhappy” with Russia, and threatened “severe tariffs” of “about 100%” if there isn’t a deal to end the war in Ukraine within 50 days.
The White House added that the US would put “secondary sanctions” on countries that buy oil from Russia if an agreement was not reached.
Analysis: Will Trump’s shift in tone make a difference?
As ever, there is confusion and key questions are left unanswered, but Donald Trump’s announcement on Ukraine and Russia today remains hugely significant.
His shift in tone and policy on Ukraine is stark. And his shift in tone (and perhaps policy) on Russia is huge.
Mr Zelenskyy previously criticised Vladimir Putin’s “desire to drag [the war] out”, and said Kyiv was “working on major defence agreements with America”.
It comes after weeks of frustration from Mr Trump over Mr Putin’s refusal to agree to an end to the conflict, with the Russian leader telling the US president he would “not back down”from Moscow’s goals in Ukraine at the start of the month.
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1:28
Trump threatens Russia with ‘severe’ tariffs’
During the briefing on Monday, Mr Trump said he had held calls with Mr Putin where he would think “that was a nice phone call”, but then “missiles are launched into Kyiv or some other city, and that happens three or four times”.
“I don’t want to say he’s an assassin, but he’s a tough guy,” he added.
After Mr Trump’s briefing, Russian senator Konstantin Kosachev said on Telegram: “If this is all that Trump had in mind to say about Ukraine today, then all the steam has gone out.”
Meanwhile, Mr Zelenskyy met with US special envoy Keith Kellogg in Kyiv, where they “discussed the path to peace” by “strengthening Ukraine’s air defence, joint production, and procurement of defence weapons in collaboration with Europe”.
He thanked both the envoy for the visit and Mr Trump “for the important signals of support and the positive decisions for both our countries”.
Donald Trump has agreed to send “top of the line weapons” to NATO to support Ukraine – and threatened Russia with “severe” tariffs if it doesn’t agree to end the war.
Speaking with NATO secretary general Mark Rutte during a meeting at the White House, the US president said: “We’ve made a deal today where we are going to be sending them weapons, and they’re going to be paying for them.
“This is billions of dollars worth of military equipment which is going to be purchased from the United States,” he added, “going to NATO, and that’s going to be quickly distributed to the battlefield.”
Weapons being sent include surface-to-air Patriot missile systems and batteries, which Ukrainehas asked for to defend itself from Russian air strikes.
Image: Pic: Reuters
Mr Trump also said he was “very unhappy” with Russia, and threatened “severe tariffs” of “about 100%” if there isn’t a deal to end the war in Ukraine within 50 days.
The White House added that the US would put “secondary sanctions” on countries that buy oil from Russia if an agreement was not reached.
It comes after weeks of frustration from Mr Trump against Vladimir Putin’s refusal to agree to an end to the conflict, with the Russian leader telling the US president he would “not back down”from Moscow’s goals in Ukraine at the start of the month.
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0:27
Trump says Putin ‘talks nice and then bombs everybody’
During the briefing on Monday, Mr Trump said he had held calls with Mr Putin where he would think “that was a nice phone call,” but then “missiles are launched into Kyiv or some other city, and that happens three or four times”.
“I don’t want to say he’s an assassin, but he’s a tough guy,” he added.
After Mr Trump’s briefing, Russian senator Konstantin Kosachev said on Telegram: “If this is all that Trump had in mind to say about Ukraine today, then all the steam has gone out.”
Meanwhile, Mr Zelenskyy met with US special envoy Keith Kellogg in Kyiv, where they “discussed the path to peace” by “strengthening Ukraine’s air defence, joint production, and procurement of defence weapons in collaboration with Europe”.
He thanked both the envoy for the visit and Mr Trump “for the important signals of support and the positive decisions for both our countries”.
At least 30 people have been killed in the Syrian city of Sweida in clashes between local military groups and tribes, according to Syria’s interior ministry.
Officials say initial figures suggest around 100 people have also been injured in the city, where the Druze faith is one of the major religious groups.
The interior ministry said its forces will directly intervene to resolve the conflict, which the Reuters news agency said involved fighting between Druze gunmen and Bedouin Sunni tribes.
It marks the latest episode of sectarian violence in Syria, where fears among minority groups have increased since Islamist-led rebels toppled President Bashar al Assad in December, installing their own government and security forces.
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6:11
In March, Sky’s Stuart Ramsay described escalating violence within Syria
The violence reportedly erupted after a wave of kidnappings, including the abduction of a Druze merchant on Friday on the highway linking Damascus to Sweida.
Last April, Sunni militia clashed with armed Druze residents of Jaramana, southeast of Damascus, and fighting later spread to another district near the capital.
But this is the first time the fighting has been reported inside the city of Sweida itself, the provincial capital of the mostly Druze province.
The Syrian Observatory for Human Rights (SOHR) reports the fighting was centred in the Maqwas neighbourhood east of Sweida and villages on the western and northern outskirts of the city.
It adds that Syria’s Ministry of Defence has deployed military convoys to the area.
Western nations, including the US and UK, have been increasingly moving towards normalising relations with Syria.
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0:47
UK aims to build relationship with Syria
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Concerns among minority groups have intensified following the killing of hundreds of Alawites in March, in apparent retaliation for an earlier attack carried out by Assad loyalists.
That was the deadliest sectarian flare-up in years in Syria, where a 14-year civil war ended with Assad fleeing to Russia after his government was overthrown by rebel forces.
The city of Sweida is in southern Syria, about 24 miles (38km) north of the border with Jordan.