A body was found in a suitcase at sea off the Gżira/Sliema seafront on Monday afternoon, with the police treating the case as murder.
Sources told Times of Malta the victim appeared to have been killed recently and the body placed in a bag and dumped at sea in a different location.
"This is gruesome," the source said.
The grim discovery was made at about 2pm and the identity of the deceased has not yet been established. Initial investigations suggest the body is male.
The body was lifted out of the water by the police and placed in a body bag along with the suitcase.
In a statement, police said an investigation on the body will be carried out at the mortuary. An autopsy will be carried out on Tuesday.
The surrounding area was cordoned off and AFM police were searching the seabed for any possible evidence.
A magisterial inquiry is underway.
By around 4pm, activity at the scene had died down, with a small group of police officers and forensic specialists remaining at the scene.
An area next to the Felice bar and restaurant remained cordoned off.
A police boat could be seen traversing around the harbour, with divers seen discussing the investigation with the forensic team.
Workers from nearby boats and hospitality establishments did not report witnessing anything before police arrived on the scene.
Gżira mayor Neville Chetcuti said he was "shocked" by the incident.
"It's not something good for the area... there are a lot of elderly people around that could be scared," he said, while calling for a heavier police presence.
By 5.15pm the divers were out of the water and police tape cordoning off the area had been removed.
Reacting to the news, Sliema mayor John Pillow said he was "shocked... I hope they discover the identity of the victim soon."
The incident began with reports of a suspicious luggage, sparking the arrival of an explosives ordinance removal vehicle before the body was removed from the water.