Twist in murder of Pakenham mum as mourners bid farewell

FIRST ON 7: A murdered mother-of-three has been farewelled by her devastated family in Pakenham.

The emotional service took place as a new twist emerged in the hunt for Kylie Blackwood's killer.

7News can reveal that homicide detectives have found and interviewed the mysterious man in the grey striped hoodie.

He was seen lurking outside Kylie Blackwood's Pakenham home on the day she was murdered, and has been all but ruled out as her killer.

The man interviewed by police lives just streets away from Mrs Blackwood, and was found in possession of a grey striped hooded top seen as critical to identifying the killer.

But 7News understands he gave police a credible explanation as to why he was in McCaffrey Rise prior to the murder, and told them he was on a bus when the killing is likely to have happened.

The development comes as the much loved mother-of-three was farewelled at a ceremony in Pakenham this morning.

About 600 mourners packed the service to hear tributes to a caring mother who loved shopping, holidays and animals.

Sadly though, the reason for her murder and the person who committed it, remain a mystery.