The child was with his mother at a cafe inside a shopping centre when the woman approached them at about 12.45pm on Wednesday, police said.
The woman allegedly grabbed hold of the child’s hand and attempted to lead him away, but the child’s mother then chased after them. The woman then fled the scene.
Police said they arrested a 34-year-old woman at the same shopping centre on Thursday after the mother reported the incident to police.
The woman was charged with common assault and trespass and was refused bail.
She will appear in Bankstown Local Court today.