A Hong Kong daily says that the eldest son of North Korean leader Kim Jong-il is living in Macao with his family.

The South China Morning Post said 35-year-old Kim Jong-nam has been living at a posh hotel in the former Portuguese colony for at least three years, where he welcomed foreign friends. But it also said that he left Wednesday when reports came out of his residence there.

The paper said his family lived in a huge villa on Macao's Coloane Island and cited rumors that Kim has a mistress in Macao who bore him a son.

Another source said that though Kim Jong-nam isn't short of money, he doesn't necessarily live extravagantly, citing his modest lifestyle and humble attitude.

The junior Kim is also known to have visited Hong Kong several times from Macao but is said to have been denied entry since North Korea's nuclear test in October.

Kim Jong-il has three sons, including Jong-nam, from two women.