Three people are in police custody in relation to the alleged murder of what is believed to be missing person Billy Ray Waters, 19.
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Tasmania Police Detective Acting Inspector Craig Fox said two 17-year-old boys and a 33-year-old man, all from the Launceston area, were assisting police with inquiries.
The body was found in bush land at Mayfield, about 500 metres from the Mowbray Golf Club, about 2.30pm on Friday.
"Whilst that body has not been identified yet, police believe that it is the body of missing person Billy Ray Waters," Detective Acting Inspector Fox said.
"Our thoughts are definitely with his family and friends at this time.
"Whilst the body has not been identified it must be an incredibly tough time."
The last confirmed sighting of Mr Waters was on August 4, but he was not declared missing until August 11.
Detective Acting Inspector Fox said it was through reports from Crime Stoppers plus their own investigations that led police to the Mayfield area.
"As a result of an extensive search by search and rescue, forensic police, uniformed police, and CIB, the discovery was made ... of the body, unfortunately deceased," he said.
The body had been concealed under leaves and branches.
Detective Acting Inspector Fox said "very good investigation work" was undertaken by Launceston Police.
"As a result of finding the deceased man, within an hour we had two people in custody that were arrested in a public place," he said.
Detective Acting Inspector Fox said the three people in custody were known to Mr Waters.
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Reports on social media of gunshots and screaming in the Mayfield area on August 4 were confirmed to have formed part of the investigation.
Detective Acting Inspector Fox said police received a phone call about the incident that evening.
"I've done a brief overview of the police response to that job on the night. I'm satisfied the police response was acceptable under the circumstances," he said.
He said multiple units attended the scene and a search was conducted, however loud noises can travel a "huge amount of distance".
"Unfortunately yes, it appears as if that particular job is directly related to this incident."
Detective Acting Inspector Fox thanked the public for the information they had provided, as it had directly led police to firm up investigations they had done and directly led them to the Mayfield scene.
He said he hoped the assistance continued.
Police needed information on the movements of a white four-wheel drive that may have been in the area of Mayfield bush land on August 4 to 6.
They were also after sightings of three people walking from bushland in Mayfield, through Mayfield, or toward the city after 10pm on August 4.
Police investigations are continuing.
Anyone with information is urged to contact Launceston Police on 131 444, or Crime Stoppers anonymously on 1800 333 000 or at crimestopperstas.com.au.
