Police said today human remains found inside a crocodile in Far North Queensland are believed to be those of a missing NSW man who was taken while fishing on Saturday.

The remains were discovered inside the crocodile at Cooktown and a report is being prepared for the coroner.

Police say a formal identification process is ongoing, but it is believed they are those of a missing 40-year-old New South Wales father.

Police used drones to search the Annan River in Cooktown after the man went missing. (Supplied)

Further testing will determine a positive identity.

The man was fishing on the banks of the Annan River in Cooktown with his wife and children about 2pm on Saturday when he slipped into the water.

He has not been seen since despite a major search operation which involved police officers, SES volunteers, drones and helicopters.

The crocodile was humanely euthanised yesterday after being found about 4km from where the man went missing.

The man was fishing on the banks of the Annan River in Cooktown with his wife and children about 2pm on Saturday when he slipped into the water. (Nine)

Police are working with wildlife officers as investigations continue.

Reports say people have been feeding crocodiles in the area, which is an offence and carries fines of more than $6000.

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