French motorcyclist Pascal Terry has been found dead while competing in the Dakar Rally, organisers said on Wednesday.

The 49-year-old Terry was found dead overnight after the fourth stage of the gruelling race which is taking place for the first time in South America. He had been missing since Sunday and the 2nd stage of the race between Santa Rosa and Puerto Madrid.

"The motorcyclist was found in an area that is very inaccessible with very dense vegetation 15 metres from his bike," organisers said in a statement.

"He had taken off his helmet and had taken shelter with food and water next to him."

Terry had informed race control on Sunday that his Yamaha had run out of petrol at the 197 kilometre mark, but that he had procured some from another competitor.

Organisers later tried to contact him on two occasions, but were unable to get any response.

Search operations were launched the following day, but they were unable to locate Terry until early on Wednesday morning when he was found dead by local police.

Police were carrying out an investigation to determine the cause of death.

Terry was the first fatal casualty at this year's race which started in Buenos Aires on 3 January and finishes back in the Argentine capital on 17 January.