Stephanie Simpson (32) disappeared in Mt Aspiring National Park last weekend after telling friends she planned to hike to Brewster Hut and then move on to Blue Pools.
The 32-year-old was reported missing on Monday after she failed to return from a hike and did not arrive at work.
Police announced today the search had been narrowed to the Pyke Creek area, which consisted of "extremely challenging terrain".
He said: "The family are just at their wits' end, they're trying really hard to cope".
A spokeswoman confirmed to the Otago Daily Times searchers had found "items of interest" which had informed the decision to narrow the search area. Her body was found in a canyon at the bottom of the creek.
Before search teams discovered her body, they found a "pack" and a pair of boots which were thought to be hers, police said.More news: Snoop Dogg Publicly Apologizes To Gayle King After Talking To His Mother
He said the family were "understandably grieving" and asked for privacy.
"Police extend their condolences to Stephanie's family at this tragic time".
Sergeant Mark Kirkwood, officer in charge of West Coast Search and Rescue, said the discovery was made about 1.40pm (local time) in Mt.
It was not immediately clear how exactly she died, and her death has been referred to the coroner.
Last week, torrential rain struck the area and caused slips and flooding throughout Southland and Fiordland.
Around 50 people took part in the search effort, including LandSAR staff and two dog teams. That's what she's there for, just to make the most of that free time.More news: Netflix defends itself against new transmission rivals through the Samsung association
"She contacted her friends after that on the Friday to say she was going hiking and camping".
"The New Zealand police have said there have been two sightings of her on the trail but we don't know the source of the information or have any further details".
A desperate search has been under way on the ground and by helicopter but so far Ms Simpson has not been found.
Simpson was tramping in the Mt Aspiring National Park.
Ms Simpson has been living in New Zealand since October after travelling around Australia.More news: The All-Star Game of the worldwide records