Portugal's Correio da Manhã newspaper reported that the couple had died on the Praia dos Pescadores (Fishermen's Beach) near Ericeira, a picturesque seaside resort on the country's west coast.
"Everything seems to indicate that the fall happened when they were probably trying to take a selfie", he said.
The bodies were reportedly discovered below at Pescadores Beach by a council worker and later transported to Lisbon's National Legal Medicine Institute.
"At first the fishermen thought the corpses, from far away, might be people sleeping on the beach", the newspaper said.More news: Foxconn scrutinizing harsh working conditions at factory for Amazon products
Authorities in Portugal are investigating whether they'd been taking a "selfie" after a mobile phone was found at the bottom of the cliff.
Lusa reported that the woman was in her thirties and the man in his forties. "Only when they got closer did they realise that it was a dead couple and they were shocked with what they saw".
The Department of Foreign Affairs and Trade told AAP it is providing consular assistance to "the family of an Australian who died in Portugal".
Michael Kearns, 33, and his British partner Louise Benson, 37, are believed to have died early on Tuesday local time after the fall in the popular tourist town of Ericeira, about 35 kilometres north of Lisbon.More news: Don’t tie our hands in Brexit negotiations, British government tells parliament
Its beach is a popular photo spot for tourists thanks to its cliffs and high walls.
Police say they believe the couple lost their balance and fell off the wall at some time between 1am and 6am on Tuesday.
The Foreign Office confirmed the woman involved in the tragic accident was British, and told The Telegraph: "We are in touch with local authorities following the death of a British woman in Portugal and are providing support to her family'".More news: Nike Seeks to Stop Iran's National Team From Using Their Cleats
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