The inventor, Peter Madsen, had initially claimed that he last saw Kim Wall when he dropped her off on the tip of an island in Copenhagen late on August 10.
But Madsen, who has been accused of negligent manslaughter, "told police and the court that there was an accident on board the sub that led to the death of Kim Wall, and that he subsequently buried her at sea in an undefined location of the Koge Bay" south of Copenhagen, police said in a statement.
Danish and Swedish authorities have been searching for Wall, a 30-year-old reporter who had been writing a feature story about Madsen, after she failed to return from an interview with him aboard the 60-foot Nautilus on August 10.
Danish police said the search for her body by helicopters, ships and divers during the weekend would continue today.
Swedish daily Aftonbladet quoted a letter from Wall's family on Friday "pleading for help from the public" about her whereabouts.
Wall was a freelance journalist who had reported for The Guardian and The New York Times. A graduate of the Columbia Graduate School of Journalism, she was based in New York and China.
Her friends have described her as "invincible", "ambitious" and as "always seeing something good in everyone", according to Swedish media reports.
Madsen and Wall were sighted onboard the vessel by several people in waters off Copenhagen the evening of August 10.
When Wall didn't return home, the sub was also reported missing. Rescue crews located it around midday on August 11 in Koge Bay, about 50 kilometres south of the Danish capital.
Just after it was found, Madsen was rescued, alone, and the submarine suddenly sank.
Police have since said they believe Madsen "deliberately" sank the sub. It was refloated and searched, and found to be empty.
Danish broadcaster TV2 showed images of Madsen as he was being interrogated by police after his rescue.
"I don't check the background when a journalist calls and asks 'can I interview you,'" Madsen said indifferently as he entered a police car.
The Nautilus was the biggest private sub ever made when Madsen built it in 2008.
Disclaimer: No Business Standard Journalist was involved in creation of this content
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