A man is being questioned and is expected to be charged over the murder of Karlie Pearce-Stevenson, as investigators begin to shed light on the mysterious killing of the young mother and her daughter Khandalyce Kiara Pearce.
The 41-year-old was arrested at Cessnock police station on Wednesday, police said.
Inquiries into the brutal murder of Pearce-Stevenson's two-year-old daughter continue.
Ms Pearce-Stevenson's body was discovered in the Belanglo State Forest in NSW in 2010 and Khandalyce's remains were found near a suitcase beside a South Australian highway five years later.
It is believed the mother and daughter were killed in December 2008 at different times and in different locations.