The grim discovery was made last night by Tom Kenyon, 30, who had visited the house on Victoria Street after hearing rumours that two dogs living there were being neglected.
He said: "Since November, we’ve heard a dog barking continuously for 15 or 20 minutes at a time. We have dogs and understand that dogs do bark sometimes. It was only the other day we were getting concerned and thinking something wasnt right.
"On Friday at about 6.50am I could heard the dog barking very uncomfortably, in distress, and banging like it was trying to get out of somewhere. After hearing it for 20 minutes, I went and knocked on the door, but there was no answer."
Tom and his girlfriend reported what they had heard to the RSPCA, but after hearing nothing back, he decided to visit the house again, as concerns had been raised about the welfare of the dogs.
He went into the back yard of the property, where he found an empty dog cage and the body of the dog – believed to be called Frankie – dumped in a wheelie bin.
He said: “After four attempts of rooting through the bins, I found it wrapped in a bath mat and tape like it was garbage.
“There was a rusty cage with no mat inside. It was disguting how it was being kept.”
Tom then called a neighbour and his friend, Tom Rudge, 29, to take pictures of the scene, and reported the dead animal to the police and RSPCA.
“When I found it I was a bit distraught and didn’t want to get it out and handle it,” he said. “I left the dog there and got another neighbour to come and have a look with me. We got on the phone to the RSPCA and police but no one came. We've heard nothing.”
A Lancashire police spokesman said: “We’ve had a report to us and enquiries are ongoing at this stage.”
The RSPCA said: “We are aware of this very distressing footage and would always urge anyone with concerns about animal welfare to contact the RSPCA appeals line on 0300 1234 999."