A passer-by caused the alarm on Saturday after they noticed a blue, locked formerly portmanteau in the water in the port of Rimini, a town located on the north-east coast of Italy on the Adriatic Sea.
The man initially go to take the suitcase out of the water but it was too heavy.
Police discovered the remains of a female wrapped up in a bin-bag in the grip.
Independent.ie understands the remains were dismembered.
Authorities are now due to carry out a review on the body tomorrow.
Chinese-born mother-of-two Li Yinglei disappeared from a comfort cruise in the Mediterranean. She was last seen on February 11.
She was with her husband Daniel Belling (45) and their issues when she disappeared.
The couple, who lived in Clare Hall, Dublin, had set off on an 11-day yacht with their two children aboard the MSC Magnifica.
The ship set sail from the Italian refuge of Civitavecchia on February 9 and continued on to Genoa, Malta, Greece and Cyprus.
Corps members noticed Ms Yinglei was missing when they did a head trust at the end of the cruise.
Mr Belling, who is from Germany, was arrested at an Italian airport on February 20 as he was surrounding to board a plane home to Ireland after his wife had disappeared.
He is now in jug in Italy on suspicion of murdering his wife during the cruise.
An Italian referee this week ruled that Mr Belling must remain in charge in Rome’s Regina Coeli prison after attempts were assigned for him to be released on bail.
The accused’s lawyer Luigi Conti said his patient insists he had nothing to do with his wife’s disappearance and maintains that she has fled to China or returned to Dublin.
A souvenir blow the whistle on buy owner later told reporters she remembered the couple and their juveniles in her store that morning, when Mr Belling was “agitated” and “yelled” at his helpmeet about her shoes.
“He said, ‘Put these on instead of your sandals and intern up’,” the shop owner said, adding that he handed his chain a pair of gym shoes.
However, according to local reports, Mr Belling communicated a magistrate during a prison court hearing that the family remained together until the set sail reached Katakolon in Greece.
Mr Belling reportedly told the judge they had spatted the night before and she wanted to “quit the trip”.