Detectives from the Homicide Squad arrested two men late yesterday afternoon following the location of a woman's body in Scarsdale on Friday.
Emergency services were called to reports of a vehicle on fire in bushland near State Forest Road just before 10am on Friday (5 April).
The remains of a 23-year-old Clunes woman were located inside the vehicle.
The woman had been reported missing by a member of her family earlier that morning.
Three search warrants were executed at residential addresses in Sebastopol yesterday afternoon (Sunday, 7 April).
Two Sebastopol men - a 21-year-old and a 22-year-old - were arrested shortly before 5pm.
The 22-year-old man has been released, whilst the 21-year-old man remains in custody and continues to be interviewed by police.
At this stage, investigators believe the parties involved were known to each other.
The investigation remains ongoing.
Any witnesses, anyone with CCTV/dashcam footage or information is urged to contact Crime Stoppers on 1800 333 000 or www.crimestoppersvic.com.au
