Human remains have been found in the Australian outback by detectives hunting the killer of missing Sussex backpacker Peter Falconio.

Police said the lower part of a male torso was uncovered yesterday in a dam near the town of Marla, South Australia.

The discovery was made 750 miles from where Mr Falconio went missing after he and girlfriend Joanne Lees were flagged down by a gunman on July 14 2001.

The body was taken to a mortuary in Marla and is expected to be transferred to Adelaide within the next few days for forensic and DNA tests.

Australian police were today refusing to speculate but have not ruled out the possibility it could be that of Mr Falconio.

The 28-year-old, who went to university in Brighton, was tricked into stopping the camper van in which he and Miss Lees were driving.

Miss Lees was tied up and thrown into the back of the van but managed to escape and report the attack to police, sparking one of the biggest manhunts in Australian history.

She has since returned to Sussex.

A spokesman for South Australia Police said today: "We don't know who it is and at this time we're not speculating.

"The remains are in a decomposed state so it's difficult to tell how long they have been there or how old the person was."

He said the 30-metre dam, used to store water for livestock, was in an isolated spot about 20 miles south of Marla and 750 miles north of the state capital Adelaide.

He added: "There is a dirt track leading to it but you have to know where you're going. It's not a main road."

The remains were found by an employee of a nearby cattle station.

Police and volunteers were yesterday scouring the area aided by police helicopters. Police divers will search the dam tomorrow.

Police Inspector Peter Batley said the remains had been in the water for some time.

He added: "Nothing is ruled out. We're coming into this with a very open mind."

Bradley John Murdoch, 44, has been charged with murdering Mr Falconio.

He is awaiting trial on unrelated rape and abduction charges in South Australia, and is expected to be tried for Mr Falconio's killing later.