Officers searched the house in Corowa near the Victorian border on Wednesday night after concerns were raised about the welfare of a three-month-old boy.

There they found the body of a child.

The body was located in a freezer wrapped in plastic, according to media reports.

A 40-year-old woman was arrested and taken to Albury Police Station. She was released on Thursday morning.

Police say investigations are ongoing, with Strike Force Walumil established.

A post-mortem examination will be held to determine the cause of death.

The home is now a crime scene and specialist forensic officers are examining it.

Police were seen removing a freezer or refrigerator from the home on Thursday afternoon.

The mayor of Corowa's Federation Council, Pat Bourke, said in a statement there was a shared sense of devastation in the community.

"Any time a child is lost, under any circumstances, is a tragedy," he said.

"Our thoughts go out to everyone affected, especially the family of the infant and our first responders."

Australian Associated Press