sighting of Daniel Khalife who escaped from Wandsworth prison on Wednesday is being investigated by the Met Police.
The force said it was looking into a sighting of Khalife by a member of public at Wandsworth roundabout, under a mile from the prison.
The witness saw a man matching his description walking away from the delivery lorry he is thought to have strapped himself under.
He was seen walking into Wandsworth town centre.
The force said it was one of several “key lines” of inquiry being followed in the hunt for Khalife, who had been facing terror charges, as they offered up a £20,000 reward for information leading to his capture.
Met Police counter-terrorism commander Dominic Murphy described the development as potentially “very significant”, and described it as a “confirmed” sighting.
“This remains a fast-paced and dynamic investigation, but I want the public to know that a large number of officers are working extremely hard to locate Khalife,” he said.
“We have now received more than 100 calls from the public, and we thank everyone who has contacted us with information.
“The sighting near Wandsworth Roundabout could be very significant, and this is one of many useful lines of enquiry that officers are perusing.
“We continue to urge the public to contact us straight away if they think they have seen Khalife or have information on his whereabouts.
“We will continue to work closely with all our colleagues in police services across the country and other partners to trace Khalife and bring him back into custody.”
Earlier Friday, officers searched Richmond Park in west London, just over four miles from HMP Wandsworth in the hunt for Khalife.
Met Police Commissioner Sir Mark Rowley said police are considering whether the escape was an inside job.
More follows.