The bone a medical student found when gardening at Mossy Point, near Batemans Bay, has been confirmed as human.
A group of students from ANU's Rural Clinical School were living at the River Road address when they recognised the bone as a femur - a thigh bone.
They contacted police and a crime scene was established.
Following specialist forensic testing, a year-and-a-half later, results confirmed it was a human bone.
NSW Police said the case was progressing with the Missing Persons Unit, where the use of familial DNA testing will be considered.
Familial DNA databases allow the police to link human remains with family relatives. Missing Persons Registry scientists require six DNA matches be made to relatives for a conclusive result.
The investigation was ongoing and anyone with information is urged to call Crime Stoppers on 1800 333 000, and can do so anonymously.