UPDATE 10.33AM WEDNESDAY:
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The hunt continues for a knife-wielding man who disappeared into bushland at Reedy Marsh.
The widespread police search started overnight after a body was found inside a home on Larcombes Road.
The man was found dead about 6pm Tuesday, and two other men and a woman were taken into custody to assist police with their inquires.
The wanted man had not been found on Wednesday morning, with police cordoning off an area around the home, and the broader Reedy Marsh area.
Detectives and forensic officers remained at the house, where a major crime scene had been set up.
The overnight mission involved police on the ground, and in the air in the Westpac Rescue Helicopter as well as drones using infrared technology to search surrounding bushland.
It was believed the man was still in the area, and was armed with a knife, and had painted his face with camouflage.
Police warned residents in the suburb to secure their homes.
Officers are stationed at exit points stopping traffic, ensuring the man has not escaped by vehicle.
UPDATE 9.50PM TUESDAY:
Police are continuing to search for an armed offender after a body was found at Reedy Marsh.
It was believed the wanted man was armed with a knife, and had camouflage paint on his face.
The Westpac Rescue Helicopter was being used to search the area near Larcombes Road, where a man was found dead earlier in the night.
Police urged people in the area not to approach anyone suspicious, and to call triple zero if a man matching the description was spotted.
They also asked residents in the Reedy Marsh area to secure their homes.
Two men and a woman remain in custody assisting police in relation to the suspicious death.
EARLIER: A manhunt is underway after a person was found dead at Reedy Marsh.
A man's body was located inside a home on Larcombes Road about 6pm Tuesday, and three people were taken into custody.
Detectives, uniform police and forensic officers remained at the home just before 8.30pm, while police were continuing to search the area for a fourth person who was believed to have been armed with a bat.
Two men and a woman in custody were assisting police with inquiries, but no charges had been laid.
It was understood all five people, including the deceased man, were known to each other.
Police described it as an "isolated incident".
Anyone who noticed suspicious activity near Larcombes Road about 6pm has been asked to contact Launceston CIB on 131 444 or report Crime Stoppers anonymously on 1800 333 000.
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