Lady Robinson’s Beach was closed overnight after a shark was spotted within the nets.
Videos posted to social media show the shark swimming at the Brighton-Le-Sands beach close to shore on Tuesday afternoon.
Police responded to calls of the shark at 6.30pm and evacuated those still swimming.
Bayside Council are co-ordinating with DPI to secure the beach.
A search by divers this morning has found no trace of the shark.
Divers have almost completed the drag netting of the Brighton Beach enclosure to ensure the shark has gone but the beach remains closed.
“The divers have been on-site and have found no sign of the shark,” a Bayside Council spokeswoman said on Wednesday morning.
The divers discovered a whole in the nets on the southern side of the enclosure.
“The hole has been repaired and the net lifted in the deepest part and the enclosure dragged through twice but has found no sign of the shark.
“The nets are checked monthly for the council by a professional company.”
The beach was expected to be reopened this afternoon.
A local mother who saw the shark said: "There was some commotion with a bloke walking up and down the beach shouting "shark, shark".
Another said: "There were a load of kids saw it. It's a bit unbelievable, but there you go, a shark in the cordoned area."
Others took to Facebook forums including; Rockdale Residents Unite to voice their concerns.
“I know lots of families with kids swim there inside the net thinking it’s safe. We should be asking where are the people responsible about net safety!?, wrote one mother.
“Is this happening now??? Scary!” wrote another person.
“Probably a bull shark. It’s their feeding time at dusk,” speculated another.
The nets at Brighton-Le-Sands don’t go all the way to the sand.