The body of a man, believed to be that of 77-year-old Keith Parry, was discovered near Nundle on Friday afternoon. 

Mr Parry was reported missing three days ago by his wife, who last saw him on Tuesday morning before she went to work. 

This morning a passing motorist spotted a vehicle on the side of the road similar to the grey Subaru sedan being driven by Mr Parry. 

Oxley Local Area command police officers were called to the intersection of Nundle and River Rd at Bowling Alley.

Police combed the area and called the Westpac Rescue Helicopter to assist in the search for Mr Parry around midday. 

They soon located a body in heavy lantana bushland on the southern side of Chaffey Dam.

The body has yet to be formally identified and a report is being prepared for the coroner. 

Mr Parry was reportedly feeling unwell with the flu on the morning of his disappearance. 

His wife returned home to find him and their car missing. 

Police had held grave concerns for Mr Parry and believed the disappearance was "out of character".