Gareth O'Connor has been missing since May 2003
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Police looking for missing Armagh man Gareth O'Connor have found a body in a car recovered from Newry Canal.
Detectives believe Mr O'Connor, 24, was killed by the IRA. The IRA denied this.
He disappeared in May 2003 as he drove south to answer bail conditions in the Irish Republic. Police said the car was similar to the one he was last seen in.
A post mortem examination will be carried out. Chief Constable Sir Hugh Orde said if it was the missing man, it would be a major breakthrough.
"It's one of the things we've been looking for for two years. It certainly reinforces our commitment to bringing this case to a closure," he told Radio Ulster.
Police have been preserving the scene where the car was found
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"It will be a very important line of inquiry. It may enable us to take the investigation to the next stage."
The blue Volkswagen Golf was discovered close to Victoria Lock near Newry after a two-day operation involving members of the PSNI's Underwater Search Unit.
The car has been taken away for forensic examination.
Mr O'Connor's family also believe he was murdered and have made appeals for information about the location of his body.
The father-of-two was reported missing after he failed to report to Dundalk police station in the Irish Republic as part of his bail conditions on a charge of belonging to an illegal paramilitary group. He had been charged with membership of the dissident republican Real IRA.
He was last spotted on closed-circuit television pictures driving through the County Armagh village of Newtownhamilton.