Victorian toddler Daniel Thomas's babysitter told a friend that his mother killed him, an inquest has heard.
Daniel, then aged 32 months, was reported missing in Myrtleford by his babysitter Mandy Martyn in October 2003 while his mother Donna Thomas was in Shepparton.
His remains were found in March 2008, under a Myrtleford home where he and his mother had previously lived, but a pathologist says he was less than three years old when he died.
In a statement given to police two days ago, one of Ms Martyn's friends Madeline Kelly said after the remains were found Ms Martyn told her what happened to Daniel.
Ms Martyn said she saw Ms Thomas strangling Daniel and hit her to try to stop her, Ms Kelly said.
Ms Kelly told the Victorian Coroners Court in Wangaratta on Wednesday that Ms Martyn had begged her not to tell anyone and then never spoke about it again.
The inquest continues.
