The woman, named as Yam Levy, had been staying in a hotel in the Alpine town of Immenstadt. Guests said they saw her having breakfast there last Tuesday morning. Staff alerted the police two days later after she failed to check out.
The last sighting of the woman was at a mountain hut in the Kempten area on Wednesday of last week, where she was seen in the company of two young men and a woman. The group are then said to have made their way to the nearby "Alpsee Coaster" summer toboggan track. After that, her trail was lost.
It's unclear whether she knew her companions, police told Spiegel Online.
A large-scale search operation was launched with police saying they were "pursuing all leads."
Helicopters and sniffer dogs scoured the area surrounding the toboggan track for days and the woman's parents travelled to Germany to help with the search.
The 23-year-old reportedly spoke German fluently with no discernible accent.
Her body was discovered at the foot of the Fellhorn mountain south of Kempten on Thursday afternoon. Initial reports suggest she died from a fall.