Fugitive Tom Phillips escaped multiple pursuers on the road to Kāwhia earlier this week, residents in the area say.
Phillips has been missing with his three children since December 2021, but he was spotted on three occasions on Wednesday, including what police described as an altercation on the road to the coast town of Kāwhia.
Residents told RNZ the altercation was a car chase, which began after a member of the public recognised the stolen ute Phillips was driving in the Waikato town of Pirongia.
They also recognised Phillips and followed him along the winding road which leads to Kāwhia on Wednesday evening.
They said Phillips turned off his vehicle's headlights and apparently turned into a car park outside Te Kauri Lodge, about 16km from Kāwhia, apparently driving through a gate and on to a farm track.
His pursuers did not see him and drove past.
One of the lodge's custodians, Ruby, said she understood several vehicles were involved in the pursuit and one tried to block the road.
"They knew it was Tom Phillips. He must have come up here and one of the other fullahs went up to the lookout and blocked off the road up there," she said.
She said it appeared Phillips had driven through a gate and into a paddock and then left.
"He went in there, went up that road 20 metres and then came back out and shot back down this way," she said.
"He went in there and he hid. These fullahs drove straight past."
Ruby said she checked on the lodge, which was owned by children's outdoor and environment organisation Hamilton Junior Naturalist Club, because she was worried about it.
She said police arrived and searched for Phillips.
Police inspector Will Loughrin said the altercation had involved Phillips and a person who knew him.
"A person associated to Tom was involved in that altercation with him. When they identified that it was him in the vehicle they immediately contacted police.
"We deployed a number of police resources out to the Kāwhia area including the Eagle helicopter as well to support our search for that vehicle. Unfortunately, we did not find the vehicle.
"At this stage, we're making a number of inquiries, and the Kāwhia community as well as a number of our communities on the west coast there will see an increased police presence at the moment while we work through our inquiries to try and locate that vehicle, which is really, really critical to the next stages of our investigation."
Loughrin said Phillips had disguised his appearance by using a face mask and other means.
Private investigator Chris Budge has been looking into the disappearance since last year and believes Phillips has probably been living on a farm within 50km of Kāwhia.
"It's a case I think of living in plain sight, living on a farm somewhere and that's hopefully where the kids have been" - Chris Budge
Budge did not think Phillips was living in the bush. "Somebody's helping them, providing supplies, and he's providing the work in the farm area," he said.