Mary Kate Heys, 20, of Manchester, has told of her terrifying ordeal after being allegedly kidnapped from a hostel at Mooloolaba on the Sunshine Coast, Queensland, on Monday.
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She has claimed to local media the man was possibly mentally unstable but at one point during the incident thought he may have been influenced by drugs - triggering her to initially want to help him.
Queensland Police has confirmed to the Mirror this afternoon that officers intercepted a woman, 20, and a man, 22, in Gympie, 90km north of Mooloolaba, on Monday.
A QPS spokesperson said the man was taken to the mental health unit of a hospital.
"Basically what happened was they have gotten in a car down at the Sunshine Coast and they have driven up to Gympie," the spokesman told The Mirror.
"She has said that she was being held against her will. So it was a deprivation of liberty job. Police have then pulled the car over in Gympie.
"They have spoken to both parties involved. He was then taken to the hospital but I believe he did go to the mental health unit there.
"Then the woman has told police she did not want any further action taken on it. Basically, not press any charges.
"There is no further action from our end."
It has been reported Ms Heys met a Swedish man, 22, a few days ago at her accommodation after arriving Down Under a fortnight ago.
Her two weeks in Australia has featured trips to the beach for sunbathing in her bikini, swimming and cocktails, according to a social media account belonging to her.
She is also photographed meeting local wild life including kangaroos.
"I needed much encouragement for this," she wrote on a photo of her poised to jump from a bridge into a canal at Mooloolaba, a popular tourist spot known for its beaches and seafood.
Ms Heys was said to have been woken at her accommodation at about 4.30am yesterday by the man in a "manic state" asking her to go on an adventure to Brisbane.
She said she couldn't tell if he was on drugs or not but his eyes were "wide" and she got in the car because she was worried about his safety, The Courier-Mail reports.
She claimed the alleged kidnapper then told her they would go to Cairns - about 1500km away in far north Queensland.
"He kept talking about how 'they' (the aliens) were coming to get us and we had to get to Cairns to escape, I was so scared and I thought I was going to die," she told the paper.
However, the backpacker said she successfully convinced him she needed a drink and he stopped at a petrol station.
"I told the woman at the counter don't look out the window and draw attention but can you please call the police and take down that number plate because the man I am with won't let me leave," Ms Heys told the paper.
Ms Heys said they drove for about another hour but she texted her dad when police had not appeared.
"I said 'don't worry' but I knew getting a message like that would be a parent's worst nightmare," she told the paper.
Text messages she sent her dad included "Dad are you awake", "I need you to call Australian Police" and "I've been taken by a man... please hurry."
Ms Heys revealed to the paper her dad then told her he had called the cops and asked her to keep sending her location.
The British woman was using Maps and pretended the app did not work so she could covertly send messages to her dad.
A police car approached them at Gympie - about 90km north of Mooloolaba - motioning for their vehicle to pull over and Ms Heys jumped out of the car even before it had come to a complete stop, she said.
However, she said she had not pressed charges against the man.
Queensland Police originally told the paper an incident had taken place in the Gympie area.
However, they would not comment further.
The QPS spokesman could not say to the Mirror if he would be deported as Ms Heys said.