An Australian woman who vanished last week from an island off southern Thailand and presumed drowned has been found alive in Indonesian waters.

Dominique Courteille, 57, was picked up yesterday by a fishing boat after apparently drifting in a dinghy for several hundred kilometres.

The Australian, Perth mother of four, who is described as being in a serious condition, disappeared early last Thursday from Lipe Island near Satun.

The keen yachtswoman was the subject of a three-day air and sea search by Thai Marine Police, but the hunt was called off late Sunday.

Australian consular officials confirmed her miraculous rescue late yesterday, but could add only sketchy details.