Stuart Barry Russell, 40, of Franklin, appeared in an out-of-hours court session in Hobart yesterday, charged with one count of murder and one count of arson.

It is alleged Mr Russell murdered Brett Edward Williams, of Eggs and Bacon Bay near Cygnet, late on Friday night or in the early hours of Saturday morning.

It is further alleged that on the same night Mr Russell set fire to a building owned by Mr Williams.

Tasmania Police Inspector Adrian Bodnar said a preliminary examination of the body had revealed three stab wounds to the victim's chest and abdomen.

``One stab wound was in close proximity to the heart _ that may have been the fatal blow,'' Inspector Bodnar said.

``There is evidence that there was an accelerant poured on and around the body and there has been an attempt to conceal the crime by fire, which didn't take off.''

Inspector Bodnar said the victim's family had been notified.

An autopsy will be conducted today to formally identify the man and the cause of death.

Two other people were taken into custody at the weekend over the alleged murder but Inspector Bodnar said they were released after police questioned them.

He said police were seeking information from the public.

He said police were particularly interested to hear from anyone who may have heard or witnessed any suspicious activity in the area of Marsdens Lane and Flakemores Road, Eggs and Bacon Bay from late on Friday to early on Saturday.

They also wanted to hear from anyone who may have witnessed unusual activity around the waterfront area of Eggs and Bacon Bay.

Mr Russell was remanded in custody and will reappear in the Hobart Magistrates Court this morning.