A missing bushwalker lost near the Overland Track, Cradle Mountain, has been located alive and well by police search and rescue teams.

The woman, from the Northern Territory, contacted police via a satellite phone she was carrying when she became lost on her way to Waterfall Valley Hut about 5.30pm last night.

Police search and rescue teams were deployed, along with SES volunteers, to search for the woman in freezing temperatures and strong winds.

Police located the woman about 7.45am this morning, and they are assisting the woman to Waterfall Valley Hut. The woman will then be transported out of the area, either by helicopter or walking, depending on her condition.

Inspector Shane LeFevre said that police were very pleased to locate the woman, who has been missing in very cold, remote and difficult terrain.

Tasmania Police take the opportunity to remind bushwalkers and campers, that they need to be well prepared for weather changes, notify someone of the intended journey and return times, and strongly recommend that walkers take EPIRBs with them, for use in the event of an emergency.

Tasmania Police have praised the efforts of people involved, including search and rescue staff, State Emergency Services personnel and volunteers.