Police later found clothing, a walking stick with her name and human remains beside a crocodile-infested creek near Four Mile Beach, about a mile from the aged care facility.
"Because of the proximity of these items and this unknown material located near this creek bank, we can not rule out the possibility of a croc attack", Acting Inspector Ed Lukin told reporters at a news conference.
Authorities are hunting a crocodile suspected to have snatched an elderly woman at a creek in northern Australia.
Lukin said police believed Cameron had wandered into the dense bushland, where she became lost, but it was not known if she had entered the water.
Anne Cameron, 79, was reported missing from the Ozcare aged care facility at Port Douglas on Tuesday.
Attempts are now being made to positively identify the clothing and the remains.
He said police and the SES would continue to search the area in the hope she could be found alive.
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Aron Tydén told local newspaper Expressen : 'I was at home at my computer when I heard a loud bang. "There were many shots". Police say the violence is not being treated as a terrorist attack and officers are continuing to hunt for the gunman.
"We continue to search the area in the hope of finding her alive (but) because of the proximity of these items near the creek bank, we can not rule out the possibility of a crocodile attack". Of course as the days progress that option will diminish and as time goes by we will continue to reassess our searching options.
Her granddaughter Isabella Eggins posted on social media late yesterday, saying the family believed she had died "in tragic circumstances".
He said Department of Environment and Heritage Protection officers would patrol the area tonight "in the event that there has been a croc involved in this missing person".
She was last seen near the OzCare Aged Care facility at Craiglie, Port Douglas, on Tuesday afternoon.
Clothing and possible human remains were found on Thursday beside a small creek which runs off the Mowbray River in an area inhabited by crocodiles.
He added that as the items were "located near (a) creek bank, we can not rule out the possibility of a croc attack".