Paul Jackson told TV show Today Tonight that an old friend took him to a well on Neutral Junction, where he saw a parked pick-up truck, around the time the backpacker was killed.
Mr Jackson is convinced the truck belonged to drug runner Bradley John Murdoch, who is in jail for killing Mr Falconio while he was backpacking in the Outback in 2001.
“I know for a fact Falconio’s body is buried on Neutral Junction,” he said. “The place I am talking about is 2km off the road from the murder site. The police never, ever, went there.”
Mr Falconio was 28 when he was murdered and his 27 year-old girlfriend Joanne Lees was kidnapped. They were travelling north in their red VW Kombi, 300km from Alice Springs.
A Darwin jury found Mr Murdoch guilty of Falconio’s murder in December 2005.
Despite extensive searches, his remains have never been found.
Today Tonight said it will reveal the exact location of the well next week.
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