Police in Las Vegas say at least 58 people are dead and more than 515 others wounded after a mass shooting at a concert venue outside the Mandalay Bay Resort.
Ms Danley's brother in the Philippines said she had a "clean conscience".
Quoting an unnamed senior US homeland security official, Reuters also reported that investigators were examining a $100,000 wire transfer Paddock sent to an account in the Philippines that may have been intended for Danley. "In that sense, I thank him for sparing my sister's life".
She added Danley was likely "even (more) shocked than us" by his actions.
Whatever Paddock's motive, authorities said he planned the attack methodically, not only stockpiling almost two dozen guns in his hotel room but setting up cameras in the peephole and on a service cart outside his door, apparently to watch for police closing in on him.
During prepared remarks at local police headquarters, in front of police officers and Nevada politicians, Trump said, "We can not be defined by the evil that threatens us", noting that "Americans defied death and hatred with love and with courage" in selflessly coming to aid of others at peril to their own lives during the attack.
They said at least eight weapons, including a number of long rifles, were found in the room from where 64-year-old Stephen Paddock rained automatic fire into thousands of terrified people attending a country music concert across the street.
Speaking to reporters on Wednesday afternoon, sheriff Joseph Lombardo said "he had to have some help".
The search for Danley initially spanned several countries, with conflicting reports that she could have been in Japan or the Philippines at the time of the shooting.
The gun attachment used by Paddock that enables automatic gunfire is a device called a "bump stock" that is not widely sold. Law enforcement officials are still in the process of examining firearms to determine if they were capable of firing automatically.
Investigators found that Paddock meticulously planned the shooting.