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Lifeboat crews and coastguard teams searching off Camber Sands believe they have found the swimmer reported missing, police say.
KentOnline understands the woman was seen going into the water at 7.40am but the alarm was raised around 40 minutes later and they were not seen after entering the water.
Sussex Police have now confirmed they have spoken to the woman, who called the RNLI at 11.45am, and are confident she was who was reported missing.
A spokesman said she had been "found safe and well" after going out for a morning swim in the sea.
A member of the public called the coastguard after finding an abandoned pair of flip flops by the sea.
Both the Dungeness and Rye Harbour lifeboats have been launched along with the coastguard helicopter.
An independent lifeboat crew from Pett in Sussex has also been tasked to help the search.
Two coastguard shore teams had also been sent to search the area.
A spokesman for Sussex Police, who were called at 9.40am, said: "A woman had been seen diving in the area shortly before.
"It was believed the woman, who was described as white with dark hair and wearing a black swimming costume, had left a pair of sandals on the beach which had still not been retrieved.
"Officers helped both the Coastguard and RNLI conduct a thorough search of the coastline, which included the Coastguard helicopter.
"A woman matching the description of the swimmer called the RNLI at around 11.45am to identify herself.
"The search has been called off and police are no longer dealing."
Fears were raised as the search came just days after the deaths of five men from London who were dragged out to sea in a powerful rip current.
Lifeguard cover was introduced to the beach following the tragedy for the Bank Holiday Weekend to the end of the school holidays.
The RNLI and Rother District Council said on Friday that lifeguards would be on duty between 9am and 6pm until Sunday, September 4.