Australian police have shot and killed Dezi Freeman after the double-murderer spent seven months on the run.

A well-known conspiracy theorist, Freeman gunned down two police officers on his property in the small Victorian town of Porepunkah last August, before fleeing into dense bushland and evading extensive searches.

Victoria Police say a man was shot dead after an hours-long standoff at a rural property in the state's north-east on Monday morning. Chief Commissioner Mike Bush said the man is believed to be Freeman, 56, but formal identification is still underway.

Today an evil man is dead, said Victorian Premier Jacinta Allan. It's over.

Police surrounded a building, described as a cross between a shipping container and a long caravan, on a rural property around 5:30 local time.

After three hours and multiple police pleas, a man believed to be Freeman came outside and was shot dead.

Details are still being confirmed, but Bush told reporters he believes Freeman emerged wrapped in a blanket and armed with a gun, possibly one taken from one of the slain officers back in August.

Our ultimate goal was to arrest the person, Bush said. There was an opportunity for him to surrender peacefully but he did not. No officers were hurt during the operation, and an investigation is standard practice in police shootings.

Freeman, whose real name was Desmond Filby, was a self-described sovereign citizen, part of an anti-government movement that rejects authority and laws. Locals said he had lived with his wife and two children on his property in Porepunkah.

Freeman's double murder prompted police to shut down the area and offer a A$1 million reward for information leading to his capture. Last month, officers renewed the search, employing cadaver dogs and expressing belief that he might already be dead.

Freeman was familiar with confrontations, having a documented history of disputes with authorities, especially during the COVID-19 pandemic where his views hardened, resulting in violent encounters.

The deaths of the two officers he killed raised significant concerns regarding the rise of extremist views in Australia. Freeman's passing is seen by many as a mixed end to a tragic chapter in the community.