Christopher Shale, chairman of the West Oxfordshire Conservative Association, was discovered dead by police at around 9am.
The festival's host Michael Eavis said he was told by police it was 'a suicide situation'.
However, Tory party sources said they believed he had had a heart attack but the exact cause of death is yet to be confirmed.
Mr Eavis, 75, spoke of his sadness over the death during a press conference held earlier today.
The farmer said: 'Apparently I'm told it was a suicide situation in the early hours of this morning. It was in the Winnebago area.
'It's very very sad - I can't say too much about it."
Mr Shale, who is married with children, had been staying at a luxury £10,000 Winnebago compound just yards away from top celebrities like Kate Moss.
It is understood his family was with him. A distraught woman wrapped in a blanket - believed to be his wife Nikki - was comforted by police at the scene. Two teenage boys were also at the scene.
Inspector Chris Morgan, from Avon and Somerset police, refused to confirm or deny that the victim had committed suicide.
He said: 'We are not [officially] naming the gentleman at this moment because we believe there are members of the family that have not been told.
'I am aware that there has been some speculation that the gentleman has committed suicide. We are not saying that at this time. Read More