A former News of the World reporter who alleged Andy Coulson "encouraged" him to hack phones has been found dead.

Sean Hoare, who made claims in a New York Times article about the Prime Minister's former communications chief, was discovered at his home in Watford, Hertfordshire, after concerns were raised about his whereabouts.

A neighbour of the ex-journalist, who did not want to be named, said he was "paranoid" and looked increasingly unwell in recent weeks.

He said his friend - who battled alcohol abuse - had told residents about voicemail interception long before it hit the headlines.

Hertfordshire Police said the death was being treated as "unexplained, but not thought to be suspicious".

The neighbour said the ex-NoTW reporter was worried he was being watched. Asked if he ever spoke about the Sunday tabloid, the man said: "Yes, he did. He talked a lot, but we never knew if he was telling the truth. He said he was in trouble and he was worried about people coming to get him."

Describing Mr Hoare as a "fantasist", he added: "A lot of the time we didn't know what to believe."

Last year Mr Hoare publicly claimed that Coulson was aware of phone hacking while he was editor at the News of the World. He gave an interview to the New York Times, and then to the BBC, about the use of phone hacking at the newspaper. Speaking to BBC Radio 4's PM programme, he said phone hacking was "endemic" in the newspaper industry.

Mr Hoare, who worked on the Sun before being recruited by Mr Coulson to work on the NoTW, said: "He was well aware that the practice exists. To deny it is a lie, simply a lie." Coulson denies the allegations.

A post-mortem examination is taking place as police continue to investigate the death. A Hertfordshire Police spokeswoman added: "The man's next of kin have been informed and the family are being supported by police at this sad time." Officers have yet to confirm arrangements for an inquest to be opened.