After locating Danley, Las Vegas Metropolitan Police said she "is no longer being sought out as a person of interest."
"LVMPD detectives have made contact with her and do not believe she is involved with the shooting on the strip,” the Police Department said in a statement.
Ms Danley was out of the country when the incident took place, according Las Vegas sheriff Joseph Lombardo.
Authorities are raiding the killer's home in Mesquite, Nevada – less than 100 miles from Las Vegas.
Las Vegas shooting: Gunman identified as 64-year-old Stephen Paddock
How did Stephen Paddock get 10 GUNS into Las Vegas hotel room?
Las Vegas sheriff Joe Lombardo speaks to the media as police hunt Marilou Danley
Quinn Averett, a spokesman for the Mesquite Police Department, said: “We don’t have a lot on Mr. Paddock. He does live here in our city. We have not had any law enforcement contact with him in the past."
Earlier today, Mr Lombardo revealed police were keen to speak to Ms Danley in connection with the attack.He said: "We are interested in a companion that is travelling with him [the suspect].
"Her name is Marilou Danley. She is an Asian female, approximately 4ft 11in, weight of 111lbs."
According to police files, Ms Danley is 62 years old.
On her Facebook profile, Ms Danley describes herself as “proud mum and grandma who lives life to the fullest.”
PICTURED Stephen Paddock, 64, opened fire on the music festival on Sunday night
MAPPED: The location of the deadly Las Vegas shooting
Authorities have also located one of two cars that are registered to the shooter.
Police were looking for two cars, Hyundai Tuscon B40 with Nevada plate 114B40 and a Chrysler Pacific Touring with the licence plate 19D401.
Authorities are not aware of any motive for the fatal attack but claim Mr Paddock acted alone.
Mr Lombardo continued: “There has been multiple conjecture coming through social media that there is multiple shooters at other resorts. That has been proven to be false.
“Additionally there has been accusations or beliefs that there is some explosive going off. That is also false.”
This image of Ms Danley has been circulated by police
50 dead in Las Vegas mass shooting
Mon, October 2, 2017
More than 50 people were killed and at least 406 injured when a crazed gunman opened fire on a country music festival in Las Vegas.
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People run from the Route 91 Harvest country music festival after gun fire was heard
“The only explosive contained in this event was our SWAT team breaching the room.
“We are pretty confident that there is no longer a threat other than we are attempting to locate the person of interest.
Police are calling on anyone with any footage of the incident to come forward as investigations continue.
“Anybody that may have cell phone video or any type of video that would be of benefit to the investigation, please respond to the LVPD HQ and we will take custody of that video.”
Concert goers take cover after the gunman opened fire on the Las Vegas crowd
The gunman opened fire on revellers during the closing stages of the Route 91 Harvest country music festival.
There were scenes of chaos when the crowd of around 22,000 people tried to run for cover.
LVMPD said on Twitter: "Confirming that one suspect is down. This is an active investigation. Again, please do not head down to the Strip at this time.
“At this time we do not believe there are any more shooters.”
The gunman is not believed to be connected to any militant groups, despite rumours on social media that the attack had been carried out by ISIS.