Two men from Sebastopol have been arrested after the body of a woman was found in Scarsdale last week.
Just before 10am on Friday, emergency services were called to reports of a vehicle fire in bushland near State Forest Road.
The remains of a 23-year-old Clunes woman were found inside the vehicle.
A 22-year-old man has now been released, whilst a 21-year-old man remains in custody, with police interviews continuing.
Detectives believe those involved were known to each other.
Despite searches for her body continuing, police say this case is not related to the Samantha Murphy investigation.
Anyone with information is urged to contact Crime Stoppers on 1800 333 000.