'Shovel man' seen in area where Karen Ristevski was found

It sounds like an urban legend or scary story, but chilling new rumours about "the shovel man" are now circulating around the death of New Zealand mother Karen Ristevski. 

A motorist was attempting to turn his car around on a dirt road in the outskirts of Victoria's Mount Macedon, north-west of Melbourne, following a party in December last year. 

Ms Ristevski disappeared in June last year.

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He later reported to police that a man carrying a shovel emerged from the bush.

The witness said he had joked to the man with a shovel, "what did you do to the body?"

He said the man responded with an expressionless face, Herald Sun reported.

The man went to the police after telling the story to a local motel owner, 7News reported. 

Wellington-born Karen Ristevski's badly decomposed body was found by a bushwalker wedged between logs on a dirt track north-west of the city on Monday.

A Victoria Police spokeswoman said the remains were being taken for forensic tests to determine the cause of death.