Homicide detectives have taken over an investigation after the body of a woman wrapped in a rug was found in Toronto's Junction area Wednesday afternoon.

Police said the woman was found wrapped in a carpet in a laneway behind 583 Clendenan Ave. in the Keele Street and Runnymede Road area.

A neighbourhood resident discovered the body while walking her dog in the laneway. The body was found inside a carpet that was rolled together, held together with duct tape and pushed up against a garage door.

Police confirmed the woman's body showed signs of trauma and believe she may have been dumped there in the past 24 hours.

The victim's age was not immediately available. It is Toronto's seventh homicide of 2012.

Earlier on Wednesday police warned residents in the area that a suspect was wanted after at least two sex workers were assaulted by a man posing as an undercover police officer.

With files from CTV Toronto's John Musselman