Lamare station police said villagers at Lamare beach found the body of a foreigner being washed ashore on Lamare beach.
All identifications on the dead body matched those being given earlier to them by the police in Phangan Island who sought their help to look for missing Swiss tourist from Koh Tao since November 8.
They said identifications such as tattoo on the back, a gold teeth on upper jaw, wearing orange shorts and black shoes matched with the body on the beach.
They said the body of Mr Hanspeter was being sent to Surat Thani hospital for forensic examination this afternoon.
One of his friends Michael Phillip Klissing will also go to the hospital to identify the body.
Earlier, Koh Tao tourist police said Hanspeter Suter, 44, had just completed a dive master scuba course on the tourist resort island.
Three days before he went missing, he was told by a doctor that he should not swim because it could lead to blindness.
Police said Mr Suter was under stress and did not have any money.
He rented snorkelling gear from a shop on the beach late Saturday.
He left his passport and personal items there, but did not take a life jacket with him. He did not return to the shop since then.
Sairee Beach is the same area where two British tourists, Hannah Witheridge and David Miller, were murdered in September.