Stuart Adams, 30, left his partner's home with nine-week-old Lana-Mai 'in unplanned circumstances' in the early hours of this morning.
The tot has now been found and has been taken to hospital as a precaution and Mr Adams has been arrested in Walsall.
Police say they were called to 'a domestic incident' in Prince Street, Pleck, at around 2.20am this morning.
Chief Supt Dave Sturman today gave interviews at Walsall Police Station regarding the missing tot.
"Officers attended a domestic incident. There had been a bit of an argument," said Chief Supt Sturman.
Mr Adams is 5ft 7in tall, wearing blue jeans, blue jacket. white T-shirt and white trainers.
Anyone with information should call Walsall Police on 101.