"It is possible they were moving it somewhere for assembly," the source said.
North Korea has in the past paraded mockups of a road-mobile missile believed to be an ICBM design which has been dubbed KN-08 by outside observers. It is also believed to have an upgraded version of the missile, known as the KN-14.
A road-mobile ICBM, which could be kept hidden or moving until it was fired, would make the job of tracking and stopping a North Korean missile launch significantly more difficult.
The suspected ICBM spotted by South Korea is made up of two parts under 15 metres (49 feet) long and is shorter than the KN-08 and KN-14, the Yonhap News Agency said, also citing unidentified military sources.
Last year, North Korea conducted a test of an ICBM engine made up of a cluster of smaller rockets, indicating it was working on an ICBM design.
Separately, the Washington-based think tank 38 North said on Thursday that operations at North Korea's Yongbyon nuclear facility may have restarted. North Korea is believed to be able to reprocess plutonium at Yongbyon used in its nuclear warheads.
38 North said a lack of snow on the roof of the facility visible in satellite imagery indicated the building was being heated and therefore under operation.
(Additional reporting by Jeong Eun Lee; Editing by Michael Perry)
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