In a statement, police said they discovered Payne's body after an emergency crew responded to an call in the upscale neighbourhood of Palermo on Wednesday.
Payne had risen to global fame as part of the much-loved boyband created on the X Factor TV show in 2010, along with Harry Styles, Louis Tomlinson, Niall Horan and Zayn Malik.
Earlier this month, Payne had attended the Argentina concert of his former One Direction bandmate Niall Horan.
Liam Payne, the former One Direction star, tragically died at the age of 31 after falling from a hotel balcony in Buenos Aires, Argentina. The incident occurred at the CasaSur Palermo hotel, where police were called due to reports of an "aggressive man," and it was suggested that Payne may have "thrown himself from the balcony". He was in Argentina to attend a concert by his bandmate Niall Horan. Payne is survived by his son, Bear, and his family.