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Manhunt under way as two men fatally stabbed at a home in Clyde North, Melbourne

Police have launched an urgent manhunt after the stabbing of two people in the outskirts of Melbourne, with neighbours urged to stay inside. 

Emergency services were called to a home in Clyde North, in Melbourne’s outer southeast, just after 9.30pm on Thursday.

When they arrived they found two men, 23 and 54, with stab wounds and, despite medical assistance, both died at the scene.

Police believe both men originated from the same family.

Homicide detectives say they are searching for a third man, who they believe fled the scene before emergency crews arrived.

A crime scene has been established while detectives try to determine what happened.

Detective Superintendent Janet Stevenson from the Serious Crime Division told reporters on Friday police believe the stabbing occurred after a private birthday party turned sour.

She said an argument occurred before a brawl spilled out onto Observatory Street.

Victoria Police tape restricts access to a crime scene in Melbourne’s north

Police are now hunting for a man they would like to speak to in relation to the attack

‘It was a private birthday party that should have been a birthday celebration, [but] unfortunately had this tragic result,’ Det Spt Stevenson said.

She revealed police are now looking to speak with members of the party they believe left the scene before police arrived.

‘We understand there was probably about 20 people involved in the brawl and several people did leave before we arrived.’

‘There are several people we haven’t spoken to yet, we are working on getting in contact with those people.’

Residents have been told to stay indoors as police hunt for the man. 

Neighbours were shocked to hear sirens in the normally quiet street around 9.30pm.

They told AAP there was a party at the home in question on Thursday evening, which may have got out of hand.

‘It’s very scary,’ one neighbour, who didn’t want to be named, said.

Police have been at the scene in Clyde North on Friday morning as their investigations continue

Police have been at the scene in Clyde North on Friday morning as their investigations continue

Police told locals to stay inside their homes 'for their own safety' as they look for a man in the area

Police told locals to stay inside their homes ‘for their own safety’ as they look for a man in the area

‘We actually watched as the police arrived, for quite some time, but police told us to stay inside our homes for our own safety.

‘The man and his wife were working from home on Friday morning, as police try to piece together what happened.

The estate, which is off Thompsons Road, is relatively new with the first residents moving in around seven years ago, neighbours confirmed to AAP.

Numerous forensic police and homicide detectives arrived at the scene shortly before 9am on Friday and a police officer at the scene said they are expected to be there for most of the day.

Two SES tents remain in the street, one covering what is believed to be a body.

Homicide squad detectives are expected to speak to the media later on Friday, and have urged anyone with information to contact Crime Stoppers.

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