Alleged Ned Kelly killer still hiding in area

Tactical response officers, dogs and a helicopter equipped with a thermal imaging system are on the hunt for the killer in the Berry Springs area south of Darwin. File photo / Thinkstock

Northern Territory police believe a man wanted over the decapitation murder of a man in NSW is still hiding out on the outskirts of Darwin.

As the hunt for Jonathon Stenberg, 46, enters its fourth day in the Northern Territory, Senior Sergeant Greg Pusterla says police have received lots of phone calls regarding suspicious activity in the 45sq km area in Darwin's outer suburbs where they believe him to be.

"Acting on intelligence we are confident that the area where resources are currently concentrated are appropriate to maximise the likelihood of locating Mr Stenberg," Snr Sgt Pusterla told ABC Radio.

He said police were following up several lines of inquiry.

A large number of police continue to search for Stenberg, with dogs and a helicopter with thermal imaging equipment on board part of the efforts.

Mr Stenberg is wanted for questioning over the death of Edward 'Ned' Kelly, 54, from Broadwater in NSW who was decapitated last week.

Mr Kelly's head has not been recovered.

Snr Sgt Pusterla said forensic specialists had worked through Thursday night conducting tests on Stenberg's vehicle, which was found on Tuesday.

"We are continuing to piece together all reports of information received by residents and we again ask for members of the public to continue to report any suspicious activity to police," Snr Sgt Pusterla said.

Numerous rumours proliferating on social media websites have suggested Stenberg has left the search area and is elsewhere in the NT.

- AAP