Locals from the village of Talipao, Sulu have discovered the remains of a headless cadaver in a dry creek-bed on Wednesday.
Military reports say the body was discovered at 10am on Wednesday in the village of Gata, about 10km outside the town of Talipao.
Police reached the mountainous regions at noon, guided by locals to where the body was discovered.
The body was brought to Zamboanga City and is there now waiting for identification.
Though no official report was given, sources believe it is the body of John Ridsdel and not of another captive of the Abu Sayyaf.
Sources say that the initial one billion peso ransom was not met, and Abu Sayyaf reduced that amount to 300 million pesos. However, negotiations were bogged down and a last-minute call on April 25 was not met, and the bandits killed Ridsdel without warning.
Philippine military launched an attack against Abu Sayyaf in an attempt to rescue the hostages, but numerous gun battles and deaths on both sides did not advance troops near enough to rescue them.
On Tuesday night, Brigadier General Alan Arroljado resigned from his post after hearing of the death of John Ridsdel.