NORTHERN Territory police are investigating compelling new claims surrounding the whereabouts of murdered British backpacker Peter Falconio's body.
The NT News was sent an anonymous letter - which was provided to police on Tuesday - which claims the remains of Mr Falconio, who was murdered by Bradley John Murdoch in the Territory Outback in July 2001, are buried in remote Western Australia.
The typed one-page A4 letter, sent via Air Mail from an Australian expat now living in London, claims Murdoch rang a criminal associate - who the NT Newshas not named - to meet him in the Outback after he had killed Mr Falconio.
"Murdoch had cut the body up and put it in two large … bags that were watertight and smell proof. He told (the associate) to go straight back to Perth and dissolve the body parts in acid and put what was left in (Perth's) Swan River."
The letter said Murdoch ordered the associate to drive to Adelaide and fly to Perth, but he decided to take the train instead thinking the bags would attract less attention.
"(The associate) told me he went way past Geraldton and buried both the bags unopened in a nice spot and even made up a cross," the letter said.
"Later he realised who he had buried and was in a bad way about it."
In a statement to the NT News, a police spokesman said police were reviewing the letter to determine whether it should be investigated further.
Murdoch was convicted in 2005 of murdering Mr Falconio, 28, and assaulting his girlfriend Joanne Lees on a remote stretch of highway near Barrow Creek, north of Alice Springs, on July 14, 2001.
Mr Falconio and Ms Lees were driving along the Stuart Highway when Murdoch drove up behind them and indicated they should pull over, saying their van might have an engine problem.
Mr Falconio went behind the car with him to investigate, and Ms Lees heard a gunshot, before Murdoch cable-tied her and covered her head. She escaped and hid in bushland for five hours while Murdoch hunted her with his dog, before she managed to flag down a truck driver.
Murdoch is believed to have hidden Mr Falconio's body, which has never been found despite extensive searches.
For more on this exclusive story, visit the NT News.