The trial of the man accused of killing Daniel Morcombe has been played a covert recording of him admitting to the teenager's murder, including that he choked him and disposed of his body.

Brett Peter Cowan has pleaded not guilty to the 2003 murder on Queensland's Sunshine Coast, and the defence has previously said the confession was false.

The court was played a video of a meeting between Cowan and an undercover police officer posing as a crime boss at the Perth Hyatt.

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