The 46-year-old male was arrested on suspicion of murder, following the discovery of Natalie Dean’s body near Llanidloes on Sunday. Natalie was from the Ford area in Shropshire.
Dyfed-Powys Police confirmed on Friday that the man has been released on bail.
Officers are keen to speak to anyone who may have witnessed, or has dashcam footage of, a man and a woman in Llanidloes, or on the A470 between Llanidloes and Dolwen, on Saturday or Sunday.
The woman is described as white, 5ft 4ins, of small build, with very long dreadlocks, which were past her waist. She was wearing a grey top, dark trousers and white trainers.
The man is described as white, approximately 6ft, of stocky build with dreadlocks in his hair and a dark bandana.
He was wearing a short-sleeve, high vis-style jacket, T-shirt, shorts and light-coloured trainers, and was in possession of a black bag with a single strap.
He had a small, dark-coloured dog with him.
Anyone with information that could assist the investigation is asked to get in touch through the dedicated Public Portal at https://orlo.uk/c59gc.
You can also contact police by calling 101. If you are deaf, hard of hearing, or speech impaired text the non-emergency number on 07811 311908.
Alternatively, contact the independent charity Crimestoppers anonymously by calling 0800 555111, or visiting crimestoppers-uk.org. Quote reference DP-20230528-120.