The body was found in bushland in  Sawmill Settlement, near Merrijig, on Thursday afternoon, four days after the 31-year-old disappeared while taking an evening walk.

"The body, which is yet to be identified, is believed to be that of missing person Taddeo Haigh," Victoria Police spokeswoman Belinda Batty said.

Police said the death was not being treated as suspicious and a report would be prepared for the coroner.

Police members involved in the search found the body at 3.30pm in dense bushland less than one kilometre from the cottage holiday house he was last seen leaving.

Mr Haigh, known as Ted, left the Gibbs Court house in Sawmill Settlement at 9.30pm on Sunday night, telling friends and family he was going for a walk.

The German-born marine engineer had been holidaying with his wife, Elizabeth, for the Anzac Day long weekend.

More than 200 people had taken part in an extensive air and land search in dense bushland and rugged terrain.

Concerns for the missing man mounted with each passing day, with Mr Haigh's parents flying in from Germany on Tuesday night to join the search effort.

Acting Superintendent Libby Murphy said the family had been notified and were "shocked and upset".

"We're working with Ted's family to provide some support," she said, adding a family liaison officer had been with the Haighs all day.

Superintendent Murphy praised the tireless efforts of search crews and volunteers. She said the tragic result was "devastating and disappointing" for all involved.

Speaking to the media at the Merrijig town hall before his body was located, Jenny and Jeff Haigh said they didn't believe their son would have planned his disappearance.

"We can't understand how he got lost but we just pray and hope he'll be found really soon," Jenny Haigh said.

The pair spoke of their son's fitness and strength, confident he could survive four gruelling days in the bush.

Police and emergency services had focused on an area within a 1.5 kilometre radius of the house Mr Haigh was last seen leaving.

The search party  included members from the dog squad, airwing, mounted police, the Country Fire Authority, bush search and rescue, Ambulance Victoria and the State Emergency Service.

The last contact Mr Haigh's mobile phone had with a cell tower was 7pm on Sunday and police believed the phone had not come into range since then.

Police had received information about two possible sightings, but both were  discounted.

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Temperatures around Sawmill Settlement and Mt Buller dropped to below 5 degrees in the nights since Mr Haigh's disappearance.

On Wednesday, Mr Haigh's wife Elizabeth told 3AW radio his disappearance was completely out of character.

"He's never done anything like this before, it's really unusual, out of character to wander off and not come back and not let us know what's going on," she said.