He has been named as 29-year-old Myron William Love from Sydney, but the government is yet to confirm his death.
Mr Love was identified as a casual teacher from Bronte and an avid surfer, cyclist, photographer and traveller.
The Department of Foreign Affairs and Trade on Monday confirmed that one Australian was on board and it was "urgently seeking to confirm the welfare of the Australian".
The Yeti Airlines plane went down on Sunday en route to Pokhara from the capital Kathmandu.
The cause for the crash remains unknown, with clear weather reported, but the plane's black boxes have been located.
A friend of Mr Love's took to Instagram to pay tribute to "a truly kind, fun, energetic man we will forever love".
"It is with extreme sadness to say we have lost one of the best humans I have ever known," a Sydney-based artist lesjak_atton posted.
"Myron was one of the loves of my life. I send all my love to those who need it right now."
Rescue efforts continued in Pokhara on Tuesday morning, with two bodies yet to be recovered, Nepal's Ambassador to Australia Kailash Pokharel told ABC Radio National on Tuesday.
"Fifteen foreign nationals, including one Australian were on the plane," he said.
"This is very tragic and my heart goes to all the victims and their families."
Flights were resuming to normal service across Nepal on Tuesday.
Mr Love's name appears on a passenger manifest of the flight, Indian news site Republic World reported.
Prime Minister Anthony Albanese on Monday tweeted that the crash was "incredibly sad news".
Nepali authorities had recovered 70 bodies from the flight carrying 72 people, as of early Tuesday morning Australian time.
The search was called off as night fell in Nepal, and will resume on Tuesday morning.
The Yeti Airlines crash is the nation's deadliest since 1992 when a Pakistan International Airlines Airbus A300 crashed into a hillside, killing 167 people.
Almost 350 people have died in plane or helicopter crashes in Nepal since 2000.
with Reuters
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