Pitt Street Mall remained open. There were reports of witnesses in shock in the area.
Inspector Robert Winkler said the person's death was "a very traumatic situation".
"Support has been given to a number of witnesses at this point, as well as police and emergency services," he said.
"If you are in need of assistance from what you have seen, please contact your local GP or local hospital to seek support."
A Merlin Entertainment spokeswoman confirmed an incident took place on the Sydney Tower Eye.
"We are working closely with the police on this matter and it is being investigated accordingly.
"At this stage the Sydney Tower Eye Observation Deck and Skywalk are closed."
Police urged witnesses to come forward. A report will be prepared for the coroner.
Lifeline 13 11 14 or lifeline.org.au
Suicide Call Back Service 1300 659 467
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