UPDATE: An escaped Beechworth inmate has been located in the town.
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Police arrested Simon Poole about 9am on Wednesday, less than 24 hours after his escape.
"Police would like to thank members from the public for their assistance," a spokesman said.
He is likely to face further charges.
The incident will likely impact his security rating and lead to him spending time in a higher security prison.
EARLIER: A Beechworth prisoner is being hunted by police after escaping custody on Tuesday afternoon.
Victoria Police said Simon Poole, 47, escaped Beechworth Correctional Centre "by unknown means sometime between 12.30pm and 4.15pm".
Imprisoned for drug, firearm and deception-related offences, Poole is about 170 centimetres, of solid build, with short brown hair.
"He was last seen wearing a green tracksuit pants and a white tee-shirt but may have been able to obtain different clothes since his escape," police said in a statement.
"He is not believed be violent however members of the public are advised not to approach Poole if he is sighted, but to contact triple zero immediately."
The escapee previously frequented the Wonthaggi, Ferntree Gully and Narre Warren South areas.
Anyone with information that may be able to help police find Poole should contact the Wodonga Criminal Investigation Unit on (02) 6049 2700.
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