The 28-year-old man named on Wednesday by the Daily Mail as Alexander Williams is believed to be from the London area and was staying at the Janelas do Mar Apartments in the popular Algarve resort.
The tragic incident, understood to have been an accident, happened during the early hours of Tuesday morning, at around 4.30am.
The victim was assisted at the scene by emergency medics but did not survive his injuries.
His companions are said to have been unaware their friend had fallen from the balcony as they were sleeping at the time.
One of the friends is reportedly Sky Sports News presenter Tom White, who is said to be ‘heartbroken’ over the ordeal.
White, who hosts the channel’s Through the Night show, is understood to have been in Albufeira on a ‘lads’ holiday’.
Some reports suggest the victim also worked at Sky.
Police were at the scene investigating and the man’s body was taken to the Legal Medicine Institute for autopsy to determine the exact cause of death.
Once the results are released, the Public Prosecutor will decide what course of action, if any, should be followed.