Kenneth White's body was found in the early hours of Friday in a rural area in Clarksville, 10 miles (15km) southwest of Albany.
A babysitter's initial report that the boy was abducted from a home in the area is false, Albany County Sheriff Craig Apple told WGY-AM.
The sitter - who is the 19-year-old daughter of Kenneth's legal guardians - told police that two men wearing black ski masks had entered the house and snatched the boy.
She said the abductors had pinned her to the floor of the house in Berne, a small town in the area, before taking the child at about 1.30pm on Thursday.
Mr Apple said detectives are interviewing "a person of interest" but no other details were immediately available.
The body was found after a search that spanned three US states - New York, Vermont and Massachusetts.
Kenneth's mother lives elsewhere in New York, his father in Massachusetts.
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