UPDATE: A MAN’S decomposed body has been found in the Yarra River near Flinders St Station.

River cruise boat maintenance worker Josh Arslan phoned police after making the grisly find near Banana Alley just after 10am.

Mr Arslan, 20, said he had just arrived for work when he noticed the body submerged in the water near the front of one of the cruise boats.

He said it was tangled in the boat’s mooring lines and he first mistook it for being rubbish.

“I had a second look and I saw that it was a body,” he said.

“I looked further down and saw pants, shoes; called the cops straight away and they were here in about two minutes.

“I’m still a bit shaken up. I’ve never seen anything like it.”

Water Police divers were called in and used a wire mesh basket to retrieve the body.

Police suspect the remains, which had no visible signs of injury, had been in the river for at least two days and may have flown downstream.

Police said the man had a wallet in his pocket with a driver’s licence.

He also had a work ID card on him.

UPDATE: @VictoriaPolice attend Banana Alley, near Flinders Street, after a body was found in the Yarra River. #9News pic.twitter.com/tamDDjzMPR — Nine News Melbourne (@9NewsMelb) December 2, 2014

Police spokeswoman Creina O’Grady said the man was in his late 30s and that police were still trying to make contact with his next of kin.

“It is possible he has been in the water for two days,” she said.

She said police are still investigating and it is not known if his death is suspicious.

The case has been handed over to Melbourne Crime Investigation Unit detectives.

They are expected to speak with businesses in the area and review CCTV along the riverfront.

A post mortem will be conducted to determine the cause of death.

The Herald Sun understands the Homicide Squad is not yet involved in investigations.

Anyone with information is urged to call Crime Stoppers on 1800 333 000.