The hunt continues for a knife-wielding man police described as being a danger to the public.
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A triple zero call led emergency services to a house in Larcombes Road about 6pm on Tuesday, where a 69-year-old man was found with fatal injuries.
His wife was also injured, but was later treated at the Launceston General Hospital.
Two men, and a woman were taken into custody, while a fourth person, who was also at the scene, fled into bushland.
His disappearance sparked a suburb-wide search, with police on the ground, and in the air searching the surrounding areas.
The special operations group was called in as well as the Westpac Rescue Helicopter.
A major crime scene was established at the home, with detectives, and forensic officers still working to determine the circumstances leading up to the murder.
Officers were stationed at exit points stopping traffic on Wednesday, searching for the man in the back of vehicles.
Northern acting Commander Stuart Wilkinson said he was considered dangerous, and warned residents not to approach him.
"He's aware that we want to speak to him, but he's avoiding police, as a result of that we have significant police resources in the Reedy Marsh area, and surrounding areas," he said.
"We believe he is armed with a knife, and we do consider him dangerous.
"We don't think there is any direct threat to residents in the area, but we do want to encourage people not to approach him."
The 47-year-old from Reedy Marsh was last spotted on Wednesday morning at a home near Parkham about 8.40am, but has not been seen since.
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Drones with infrared technology were being utilised in the search, and Victoria Police had been contacted to determine whether their tracking dogs would be needed should the search expand further.
Police were searching within a 3-kilometre radius, and were confident he had not escaped beyond that area.
It was understood he was an experienced bushman, and was dressed in camouflage pants, with camouflage paint possibly on his face.
The three people in custody were a 28-year-old woman, a 39-year-old man and a 44-year-old man, all from Launceston.
"We will stay at the crime scene until we are satisfied we have processed it efficiently, so that will certainly be the rest of today, and may be into tomorrow, and as for locating [the man] we will be there as long as it takes," acting Commander Wilkinson said.
It was understood the wanted man was known to the victim, but police could not confirm their relationship.
No charges had been laid over the murder.