A man has been found shot dead at the Florida home of singer and actress Olivia Newton-John.

The dead man is believed to be a 42-year-old contractor who was working on the multi-million-dollar house owned by Newton-John and her husband John Easterling in West Palm Beach in South Florida.

Police are investigating the circumstances of the death but say the couple were out of town and not staying at the house.

Initial media reports suggested the gunshot wound was self-inflicted, but that has not been officially confirmed by police.

The man was neither a resident nor a member of the family.

The nearly 2,300-square-metre house, located on 35 acres by the coast, was built in 1975 and was bought by the couple in 2009 for $4.1 million.

Newton-John is famous for her role as Sandy in the 1978 movie Grease, based on the Broadway hit musical.

She is also a four-time Grammy winner.

The man was found dead at Olivia Newton-John's house in Florida. ( ABC News )

ABC/Reuters