A COUNCIL worker who was mowing the grass at a popular Sydney park on Wednesday discovered the body of a woman after following drag marks into the bushes.

The grim discovery was made at about 7.30am at Buffalo Creek Reserve in Hunters Hill on Sydney's lower north shore.

The worker, who was visibly shaken as police led him away from the horrific scene, found the woman with her hands bound with tape and a pink "dog's collar" around her neck.

She was also wearing dark polka-dot clothing and was found near playground equipment, in a popular children's birthday party spot, The Daily Telegraph reported.

The Homicide Squad is investigating the suspicious death of the woman, whose remains were left near a main road and are yet to be identified.

The body was lying at the end of drag marks in the dirt that extended for about 30 metres, it's understood.

The female section of a public toilet block just metres from where the body was discovered was cordoned off with crime scene tape.

The male toilets had no tape.

The cordoned-off female toilets sit about 80m from the body's location.

Resident Phil Dunne, 50, said the park was regularly used by families and the bicycle lane was used by children learning to ride.

"It's always full of kids; I come here at 6am and there will be fathers sitting at tables reserving them for parties that start later in the morning on the weekend," Mr Dunne said.

A council worker who came to collect the ride-on mower said his colleague who discovered the body was shaken but would be okay.

"He's fine, he went home for the day. Look, he used to be a nurse and he's quite used to a few things," he said.

"I don't know how much he saw, but he seems okay to me. He went home to speak with his wife."

Mel Hutson, whose house is opposite the park, said she was woken by the roar of a police helicopter above the leafy enclave.

The 36-year-old was shocked to learn the body was found with women's clothing, saying her neighbours often spent time in surrounding parklands of the exclusive suburb.

A crime scene was established at the reserve and police began canvassing the area for witnesses.

"I am very shocked, I expected to go for a dog walk - obviously, that's not going to happen," one resident told Channel 9 news.

Police were unable to confirm the woman's identity or age but said there were no signs of decomposition.

Anyone with information about this incident is urged to contact Crime Stoppers on 1800 333 000.