7 News exclusively confirmed that the needle was found inside the apple after a mother in Sydney suburb Kellyville found the needle whilst peeling the piece of fruit for her daughters on Tuesday morning.
"I just thought wow this can not be happening," she told 7. "I actually thought these were safe".
The apple was a pink lady apple purchased as part of a six pack from Woolworths at The Ponds in Sydney's North West.
7 journalist Robert Ovadia has reported that the retail giant is aware of the issue, however the apples are still available to purchase for now.
This news comes less than a week after six brands of Australian strawberries were recalled across the nation due to sewing needle contamination.
A manhunt is underway for the culprit, with Queensland State Premier Annastacia Palaszczuk has offered a reward of $100,000 for anyone with information that leads to the capture of those responsible.
Just yesterday, a metal object was found in a banana.
More to come