New lead in tourist's 1993 disappearance

Police are excavating at a rubbish tip on the basis of a new lead on one of Tasmania's enduring mysteries, the disappearance of German tourist Nancy Grunwaldt nearly 20 years ago.

Detectives from Launceston have ordered the excavation at Bicheno, 180km northeast of Hobart, as they look for a red bike Ms Grunwaldt was seen riding before she vanished in March 1993.

She was last seen riding south about 4km from the east coast town of Scamander.

An inquest in 2003 found Ms Grunwaldt, who was 26 at the time, was likely to have been the victim of a homicide.

But a former police officer came forward last year saying an anonymous phone call from someone saying they had hit a cyclist was not properly investigated.

A Launceston man has provided new information about a damaged bike he saw around the time of the disappearance, which has led to the excavation, ABC radio reported.

Police say they will expand their investigation if the bike is found.