Elkhart (US): A northern Indiana woman has been arrested on two preliminary counts of murder after her two young children were abducted and found dead in a car belonging to a neighbour of hers who was shot to death, authorities have said.

The children found dead Monday afternoon are siblings Liliana Hernandez, 7, and Rene Pasztor, 6, of Fort Wayne, authorities said. An Amber Alert had been issued for the children earlier Monday, saying they were "believed to be in extreme danger."