The man’s body was located by another person at a residence on Little Grey Street about 5.15am.

Investigators have been told an altercation was heard prior to the body being located.

A man was then seen in a nearby laneway wearing a white shirt and light coloured pants, carrying a backpack.

He was last seen walking south in the laneway.

Police believe this may have been a targeted attack or possibly involved someone known to the victim.

The deceased is a 45-year-old St Kilda man.

Homicide Squad detectives are currently on scene, along with local police.

Anyone who witnessed the incident or with further information is urged to call Crime Stoppers on 1800 333 000 or submit a confidential crime report at www.crimestoppersvic.com.au