Major breakthrough in the hunt for the killer of the woman allegedly murdered and dumped in a bin as detectives swoop

Homicide Squad detectives have arrested a man suspected of murdering an elderly woman and disposing of her body in a wheelie bin. 

Police pounced on the 45-year-old Coolaroo man in Glenroy, in Melbourne's north-west, about 11.15am on Tuesday. 

It can now be revealed the deceased woman is believed to be a 67-year-old Coolaroo local.

Detectives believe the woman's remains were put inside a bin that was picked up from her Hilgay Street home by a garbage truck on Tuesday. 

Staff at a Cooper Street rubbish tip in nearby Epping located the body while moving green waste on Wednesday and contacted police. 

A police spokesperson said an investigation is underway to determine the circumstances surrounding her death.

The woman, who is still yet to be formally identified, is believed to be known to the 45-year-old man now being interviewed by police.  

A significant police canvass of the Coolaroo area for CCTV footage remains ongoing. 

Detectives are also keen to speak to anyone who may have witnessed any suspicious activity in the area around that time.

The arrest comes on the back of rapid detective work which saw police track the route of the woman's body from the tip back to her Coolaroo property. 

On Saturday, police were seen collecting clippings from plants and shrubs at nearby properties, which are believed to have matched those found at the tip. 

Police also probed another brick home about 100m down the street, using a locksmith to enter the property about 1pm.

It is understood detectives were keen to check footage from the home's CCTV cameras, which could provide vital evidence in the ongoing investigation. 

CCTV in the largely government housing area is not widespread, with police again calling on the public to come forward with any possible footage. 

Police are particularly keen to speak to anyone who may have CCTV or dashcam footage captured between Sunday June 23 and Tuesday July 2.

On Monday, a lone detective was spotted entering the house through the front door. 

He was seen closing an open window at the front of the home before leaving about 10 minutes later.   

Apart from teams of media representatives, no-one was seen visiting the property on Monday. 

Nor did anyone attend to leave floral tributes, which have become routine at other similar tragedies.   

One neighbour told Daily Mail Australia the neighbourhood remained in shock following the suspected murder. 

'We've never seen anything like this out here. It's just awful,' the man said. 

Other neighbours claimed the woman living at the home was quiet, but friendly.

While she was not known to drive a car herself, neighbours had observed a car parked in the driveway, which was used by a man.

One neighbour said he saw a man taking out bins from the property in the days leading up to the discovery.

The scene outside the Coolaroo home on Monday was a far cry from the community response to the death of Chaithanya 'Swetha' Madhagani. 

Ms Madhagani's body had also been stuffed into a wheelie bin found on Mount Pollock Road in Buckley, west of Geelong, on March 8.

Her death sparked an outpouring of emotion from the community, with friends gathering to honour her in Point Cook, where she lived. 

The Coolaroo woman is believed to be the 48th murdered in Australia this year.  

Anyone with information is urged to contact Crime Stoppers on 1800 333 000 or log onto www.crimestoppersvic.com.au