Update: Police have said they're "of the belief" the body which washed up on Safety Beach was that of the 20-year-old backpacker who was taken by a rip at Mullaway last Monday.
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Twenty-year-old Argentinian national Ian Barr was swimming with friends when he was swept out to sea around 5.30pm.
An extensive air and sea search was unsuccessful in finding him.
"Two local people who were just walking on the beach found the body," Chief Inspector Coffs-Clarence LAC Peter Hayes said in a press conference today.
"Obviously it's in a state of decomposition - it's been in the water about a week."
DNA testing is currently being done to confirm the person's identity.
Inspector Hayes also confirmed today that there has still been no trace found of Tim 'the Bream' March or Jarrath Hillyer who went missing off the Sawtell shoal before the new year.
Previously: Police are investigating after an unidentified human body was located at a beach north of Coffs Harbour.
Police were notified around midday today that the body had been located on the shoreline at Safety Beach, just north of the Darkum Creek inlet.
Officers attached to Coffs Clarence Police District attended and the body was retrieved with the assistance of the State Emergency Service (SES).
The body was unable to be identified and was taken for forensic examination.
Inquiries have commenced to confirm who the person is and the circumstances surrounding their death.
A report will be prepared for the coroner.