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A family's dream holiday to Disney World became a nightmare when their two-year-old toddler was snatched by an alligator, with the father frantically battling to rescue his child from the beast's jaws.

The body of Lane Graves was recovered from the murky depths of the lake at the supposed magical kingdom as his devastated parents watched helplessly, powerless against the seven-foot predator in 2016.

Following an exhausting 16-hour search and rescue mission involving scores of emergency responders utilising sonar technology and helicopters, divers discovered and retrieved the two-year-old's remains.

"There's no question in my mind that the child was drowned by the alligator," said Orange County sheriff Jerry Demings at a press conference. "It was a tough message to deliver to them. The family was distraught but somewhat relieved we were able to retrieve their son with his body intact."

The youngster was seized from the banks of the Seven Seas Lagoon, a man-made lake at Disney's Grand Floridian Resort, around 9.30pm on Tuesday, June 14. The family, from Nebraska, had been at the resort since Sunday and were outside enjoying an evening of open-air films and firework displays, reports the Mirror.

Jeff Williamson, a representative for the Orange County sheriff's office, revealed that the family, including the boy's four year old sister, were on the shoreline at the resort's lake, with the toddler paddling at the water's edge while his parents were nearby.

"He was about a foot in, maybe ankle-deep or a little higher," Williamson explained. "There's a sign there that says no swimming. There's no indication he was doing that, but he was at the edge of the water and this freakish incident takes place in which a gator comes along and latches on to this poor child.

"The father was very close by. He heard what sounded like a splash, he turned, he thought the splash was something innocent, but of course there was nothing innocent. He saw his child in the mouth of the gator. He ran to get the child out of the gator's mouth and wrestled with the gator but was not successful. The gator was able to get the child away from the father and disappear into the water.

"It is tragic. It is heartbreaking. There's no other way to say it," he said, adding the father had sustained minor cuts to his arms, and he believed the mother had also entered the water.

Demings stated Disney officials had done "everything they can to make the family comfortable during this ordeal" and a Catholic priest was present when he broke the news to the parents.

A Disney spokeswoman has announced all beaches at their expansive resorts are being closed "out of an abundance of caution" until the alligator involved is confirmed captured.

"We are devastated by this tragic accident," said Jacquee Wahler, director of communications for Walt Disney parks and resorts. "Our thoughts are with the family."

Wildlife officials have managed to capture and euthanise five alligators from the lake overnight, but there was no sign of the boy, according to Nick Wiley, executive director of the Florida fish and wildlife conservation commission (FWC).

Wiley explained that since the boy's body was found intact and close to where he was last seen: "There's a good chance we already have this alligator."

The extensive search operation involved 50 personnel, boats and helicopters from the FWC, sheriff's office and Reedy Creek fire department, Demings said.

Wiley pointed out that while Florida is known for its alligators, a family from Nebraska may not have been aware of the potential danger posed by the lake.

"This hotel has never had complaints of an alligator attack, or an alligator nuisance, whatsoever," he stated. "This beach has been there for a very long time. We're treating this as an isolated incident."

He suggested it was not clear enough that there might be alligators, saying "The sign says no swimming. There's no other sign."

Officials have confirmed this was the first alligator fatality at Disney in 45 years. "We work very closely with Disney to remove nuisance alligators as they're observed," Wiley stated.

"We've got some really good professionals out there today. They know what they're doing."

Despite the incident, Wiley reassured that alligator attacks on humans in Florida remain "very rare". He added: "We always caution people in Florida to be careful around water bodies, but millions of people enjoy Florida safely.

"It's not common at all, in fact it's very rare, for people to be attacked by alligators, in Florida or anywhere you find alligators," he emphasised. "We have alligators in all freshwater across Florida. They move around."