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Terence Darrell Kelly pleads guilty to kidnapping four-year-old Cleo Smith near Carnarvon

Terence Darrell Kelly was transferred to a Perth jail last November after being charged in Carnarvon. (Getty Images: Tamati Smith)

The man accused of abducting four-year-old Cleo Smith from her family and holding her for 18 days at his house in the West Australian town of Carnarvon has pleaded guilty to a charge of child stealing.

In a surprise development, Terence Darrell Kelly, 36, admitted his guilt when he appeared in Carnarvon Magistrates Court this morning via video link from the maximum-security Casuarina Prison in Perth.

He has been held there since he was flown to Perth two days after Cleo was found by police in a locked room at his home in November, playing with toys.

The house was just a few streets away from where Cleo lived with her mother Ellie, stepfather Jake and baby sister Isla.

The house where Cleo Smith was found in Carnarvon. (ABC News: James Carmody)

The family had been on a camping trip at the Quobba Blowholes on October 16, when Cleo vanished from their tent in the middle of the night.

Cleo and her family were camping north of Carnarvon when she disappeared without a trace. (ABC News: James Carmody)

Cleo found 18 days later

A massive land, air and sea search was launched immediately, but there was no trace of the little girl, or the sleeping bag she was in when her parents put her to bed.

It was not until 18 days later police announced in the early hours of the morning that she had been found alive in the house where Kelly lived.

In court today, Terence Kelly spoke only to admit kidnapping four-year-old Cleo Smith. (Facebook)

He was arrested and the next day, after receiving hospital treatment for what was believed to be self-inflicted injuries, and charged with forcibly taking a child under 16.

Further details then emerged about Kelly, including his obsession with Bratz dolls, of which he kept dozens in a room at his house, some still in their boxes.

Kelly was pictured on social media holding Bratz dolls. (Facebook)

It was claimed he was a regular customer at the local toy store where he asked to have dolls wrapped for his "daughters".

His image appeared on a social media account featuring pictures of the dolls and information about his "family". In reality, he did not have a partner or any children and lived alone.

Kelly facing 20-year prison term

Kelly, who was wearing a grey t-shirt in the video link and was bearded, was represented by defence lawyer Kate Turtley-Chappel and spoke only to enter his guilty plea.

Defence lawyer Kate Turtley-Chappel was present in court for Kelly's appearance. (ABC News: Joanna Menagh)

He did not enter a plea to a new charge of assaulting a public officer.

Kelly was remanded in custody until his next appearance in WA's District Court in March, when a date may be set for his sentencing.

He faces a maximum term of 20 years in prison for the child-stealing charge.

But his guilty plea has been entered at what is considered to be an early stage of the court proceedings, avoiding the need for a trial, and sparing Cleo and her family from having to testify in court.

For those reasons, the sentencing judge may consider giving Kelly a discount on his sentence for his cooperation.

Kelly's grandmother Esther Mingo attended the hearing and spoke to reporters ahead of the guilty plea.

Terence Kelly's grandmother Esther Mingo was in court for the hearing. (ABC News: Joanna Menagh)

She said she just wanted the "truth" to emerge.

"I'm upset, I'm angry for him coming to court," she said.

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