The ABC understands police have identified a suspect in a double murder at Natte Yallock, in central Victoria.

The bodies of brothers Douglas and John Streeter, who are in their 60s, were found in a rural farm house by a family member last night.

As part of the investigation, police have set up another crime scene at a recycling business about 90 kilometres away in Bendigo.

Police have been tight-lipped about the crime but it is understood a suspect has been identified.

The mayor of the local shire, Michael O'Connor, says the men were well-liked locals who were sheep farmers.

"(I want) to urge anyone with even the slightest little bit of information or the thought of information to come forward and talk to police," Mr O'Connor said.

The close knit faming community is stunned by the deaths.

Another friend Robert Vance says he held the men in high esteem.

"I just couldn't believe it. Those gentlemen are fine upstanding people who have been great leaders in the community all their lives," he said.

"It's just crazy."

A neighbour, John Sullivan, says the crime has frightened the community.

"I'm just devastated. (It) just makes you feel unsafe. You expect this sort of thing in the city, but not up here," he said.

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