Police in Hangzhou, Zhejiang Province have found the body of a man who they believe was drowned nearly two years ago over a multi-million yuan loan, local news portal reported on Tuesday.

The body of the victim, surnamed Zhang from Inner Mongolia Autonomous Region, was discovered at the bottom of the 100-meter-deep Qianxia Lake in a steel cage on January 6.

The suspected killer, surnamed Hu, is accused of trapping Zhang in the cage, driving it to the edge of a bridge and pushing it into the water on August 31, 2012.

Hu, who previously stood trial for his connection in Zhang's disappearance, will be tried again for homicide, said police.

Zhang had borrowed 26.5 million yuan ($4.2 million) from Hu, a known local loan shark, in 2010. When Zhang failed to return the money, Hu kidnapped him in Hanzhou on June 10, 2012.

Hu then held Zhang for ransom. When Zhang's family called police, Hu dropped Zhang into the lake, police said.

Hu was apprehended in a Bangkok hotel on February 27, 2013 and stood trial for Zhang's murder. He pled not guilty.