The body of Steven Allford was discovered just before 9am last Friday morning by a security guard about 100 yards from the Malaga airport train station.
His hands and feet were fixed to a bench with plastic ties and his trousers were around his ankles, according to police sources reported in local Malaga newspaper Diario Sur.
The man, who was known to be sleeping rough in the Malaga area and pushed his belonging around in a luggage trolley, was discovered with a slice of ham placed on each buttock and his genitals placed inside an open tuna can.
Reports said that there was no visible signs of violence on the body and that there was strong indications that he had consumed a lot of alcohol.
A post mortem revealed that the 51-year-old had choked on his own vomit and police are now investigating whether he died during a sex attack or if he was placed into the bizarre position after drinking too much and passing out "by a person or persons who thought it fun to humiliate him".
A Foreign Office spokeswoman could not confirm the identity of the victim. She said: "We are in contact with local authorities following reports of the death of a British man in Spain."