Breakthrough in case of UK woman found dead in Melbourne strip club

There has been a breakthrough in the mysterious death of British exotic dancer Stacey Tierney, whose body was found inside a Melbourne strip club last year.

A 33-year-old Melbourne man has been arrested as part of investigations into the death of the 29-year-old Manchester woman, who died after drinking with several men at the Dreams Gentlemen's Club in central Melbourne on December 19.

Tierney described herself as a "free spirit". Photo / Facebook

The Ascot Vale man was arrested and interviewed yesterday on suspicion that he had lied to police earlier. He has now been released, with perjury charges pending.

Police have confirmed to the Herald Sun that they are investigating whether drugs were used at the club that night.

Tierney, who was also a fitness instructor who described herself as a "free spirit", was laid to rest in Manchester in January as her family struggled with not knowing how she died.

One theory is that her death was covered up.

Dreams Gentlemen's Club in Melbourne where Stacey Tierney was found dead in December.

She had been partying with several men inside a private room in the basement strip club after hours on December 18.

Early reports suggested the men left after she died and she may have been dead inside the club for as long as half a day before her body was discovered.

News Corp understands associates of Tierney failed to call emergency services for fear of attracting a police investigation into the club.

"What I heard was that it was a private party inside the establishment when it would be normally closed and these alleged several men fled the scene without raising any concerns," Tierney's uncle Graham told news.com.au in January.

Stacey Tierney was 29 when she died. Photo / Facebook

"Then where were the staff (who) I assume would be serving them and who authorised the party? Surely the owners must know?"

Most of Tierney's family was unaware that she was caught up in the adult entertainment industry.

Her uncle told news.com.au that "she was -- and still will be -- my beautiful niece, a hard working young lady who was full of life and a lovely personality".

The strip club has increasingly come under fire from exotic dancers who knew Tierney.