A Victorian man arrested after an overnight stand-off with police was an associate of the victim of a fatal Father's Day shooting in the same seaside town.
The 30-year-old was arrested early on Tuesday after a police operation started about 8pm on Monday when he told police he had a hostage.
"Homicide squad is following up the fatal in Rosebud on Sunday and as a result we identified a person of interest who is an associate of the victim," Homicide Squad Detective Inspector Mick Hughes told reporters.
The woman hostage, believed to be his partner, was released from the tent the man was living in on the premises, about 3.40am on Tuesday.
Heavily armed police stormed the property about 6.30am and after a series of loud bangs the man was arrested.
"He subsequently has been injured by the police dog that was used in that arrest," Det Insp Hughes told reporters.
"He is in police custody and is seeking medical attention for a severe bite to his leg."
The arrest comes as friends paid tribute to the shooting victim named as Josh DiPietro, who died on Monday.
The 31-year-old was shot in the head on Sunday night after spending Father's Day with his parents in Rosebud.
"The good really do die young what another sad loss for our community," Kate Lambie wrote on Facebook about Mr DiPietro.
Friend Benny Glavanic wrote his thoughts and prayers were with Mr DiPietro's family.
"RIP Dippa! Taken from us in the most tragic of circumstances. You were an amazing man and a true friend," Mr Glavanic said on Facebook.
Mr DiPietro was dropped off at a milk bar in Rye by his mother, who kissed him goodbye and told him she loved him.
He was collected by a friend and police believe the pair were headed to the RSL for a drink when Mr DiPietro was shot.
"We certainly believe this was a targeted attack, it was very specific: shots fired into the car," Detective Inspector Mick Hughes told reporters on Monday.
Police now say the victim may have attended the property where the latest incident occurred on the day of the shooting.
