The mushroom was found in the Pu'er Sun-River National Park in Pu'er City with half of it being covered by leaves.
"Half of it was covered by leaves and the other half was in the air," a park staffer said.
"It had different layers and appeared brown. It had many wrinkles," the official said.
The mushroom is the biggest ever discovered in the region. Mycologists say that it is not edible.
"I have been living here for more than 40 years, but I have never seen anything quite like this before!" said a local villager.