The man, named locally as Kieran Ward, was last seen in the town just after 7pm on Sunday evening.
Members of Donegal Mountain Rescue, the Gardai and dozens of locals had spent all day yesterday searching the area around the town.
The emergency services had concentrated their searches in and around the town of Glenties and also along the local River Owenea and last night a body was recovered from the river.
One local man taking part in the search said local people are devastated by the discovery of the body.
“We all went out hoping for the best but fearing the worst and unfortunately the worst has happened,” he said.
Mr Ward, a stone mason and father of two, was well known in the area.
Various clubs including Naomh Conaill GAA club had joined the Garda search.