Britain's Foreign Office has said it is making efforts to find the body of Kenneth Bigley, the engineer who was killed by his kidnappers last week.
Reports from Iraq say the body has been dumped just south of Baghdad.
The reports quoted sources close to Iraqi insurgents.
Mr Bigley was beheaded last Thursday after three weeks in captivity and a videotape of the killing was handed to an Arabic television channel on Friday.
He had been held by followers of the Jordanian militant, Abu Musab al-Zarqawi.
Meanwhile, an al-Qaeda-linked group has posted a video on the Internet showing the beheading of a Shi’ite Iraqi man it accused of spying for US forces in Iraq.