A serial killer may be on the loose on a luxury Caribbean island after a Banbury woman was found strangled on the beach there.

Graduate Joanne Clarke, 24, believed to be from the town, was found murdered near the decomposing body of another woman on Paradise Island in the Bahamas, police said today.

The gruesome discovery came on the anniversary another Briton was discovered battered to death on a neighbouring island. That killer has not been found.

The second woman was also thought to have been strangled, police said. She was believed to be 32-year-old teacher Lori Fogleman, from Virginia, USA.

The bodies were in bushes separating the island's golf course from a secluded part of Cabbage Beach on the four-mile-long holiday resort.

Miss Clarke was visiting the Bahamian capital Nassau with a friend for a three-week holiday. She had been staying at the home of Greg Cole and his family in Nassau since August 12.

She had gone to the beach on Friday at noon with a female friend, called Michelle, and Mr Cole's ten-year-old son.

Michelle took the youngster home at 3pm but when she returned there was no sign of Joanne.

Police and volunteers searched for Miss Clarke and her body was found on Saturday afternoon lying face down in the bushes.

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