Three witnesses claim to have seen Patrick McDermott on Mexico's remote Baja Peninsula as recently as 10 days ago, the Australian Daily Telegraph reports.
McDermott is suspected of faking his death last June 30 to escape debts and possible jail time.
The Daily Telegraph report claimed the fishing boat McDermott was on took a previously unknown stop that could have allowed him to jump ship and escape on land.
In Cabo San Lucas, businessman John Brown told the newspaper he saw McDermott in the Baja Cantina bar May 26.
Brown, from San Diego, said he recognized McDermott from a photograph shown to him by investigators.
"I've seen this guy. I'm positive that's him. He was sitting on the corner of the bar by himself drinking beer." Brown told the Daily Telegraph McDermott told him he was working on a private fishing boat but planned to lead tours to waterfalls outside Cabo San Lucas.
The newspaper said the U.S. Coast Guard would not comment on the case and a representative for Newton-John could not be contacted.