The beast - dubbed the Palace Puma - was sighted in some woodland by journalist Helen Barrett, 41, who was out for a walk with her family.
They were so terrified that they fled from the “wild animal” - described as black and 5ft in length - after it approached them on a pathway between Church Road and Auckland Hill at 3.45pm.
Mrs Barrett said: “It was quite alarming.
"At first we couldn’t believe what we were seeing.
"It was black, the size of a labrador, but walking like a cat.
"It had to be feline.”
She thought it must be a puma or panther.