The Australian Embassy in Lisbon has also been informed of the death.
Reports said two Australians may have been taking selfies when they fell about 30 metres in the town of Ericeira.
This is the first picture of a British tourist who died along with her Australian boyfriend when they plunged off a 90ft beach wall while taking a selfie.
"We found a mobile phone [at the bottom of] on the sea wall which indicated they might have been taking a selfie when the phone fell - they leaned over to get it and fell", he said.
Fishermen in the area thought the pair was simply sleeping on the beach but discovered a "horror scene" when they approached, describing the couple's bodies as "shattered" to local paper Journal de Noticias.
Tributes have begun to flow for the beloved couple, who left Australia in January to travel the world and had attended a friend's wedding in Portugal just weeks earlier.
Tourists have plunged from the wall before and locals have asked for security measures to be implemented, according to the Telegraph UK.
A Foreign and Commonwealth Office spokesperson said: "We are in touch with local authorities following the death of a British woman in Portugal and are providing support to her family".
The Department of Foreign Affairs and Trade told AAP it was providing consular assistance to "the family of an Australian who died in Portugal".
While investigations continue, Corfina Media reported police have ruled out murder as a possible cause of death.
The beach at Pescadores is surrounded by cliffs and a 30-metre high wall covered in shrubs.
The beach is a popular resort with surfers on the south coast of the Algarve.