Alleged Vic killer mentally unwell: court

Lawyers for a former Melbourne private schoolboy accused of murdering a homeless man are likely to argue he was mentally impaired at the time of the attack.

Easton George Woodhead, 19, appeared in the Supreme Court of Victoria on Monday ahead of his September trial for the murder of Morgan Wayne "Mousey" Perry in January last year.

Woodhead's barrister, Michael Tovey QC, said a report had been done on Woodhead's mental state at the time of the January 4 incident and there were indications of a pre-existing psychosis.

He told Justice Lex Lasry it was likely Eastwood's mental impairment would be a key issue at trial.

A witness who lived on the Yarra River encampment with Mr Perry when he was killed told the court on Monday the person who stabbed Mr Perry had been talking to him about werewolves and vampires.

Mark Hanlon said he couldn't remember everything that happened because he was "off his face" at the time.

But he said details in his witness statement were true because he didn't lie to police.

He also told police Mr Perry had "gone for his chain", referring to a chain with a padlock on the end which he kept in his bed during the incident, the court heard.

Woodhead, of Melbourne, has pleaded not guilty to murdering Mr Perry.

Mr Tovey SC told a committal hearing in the Melbourne Magistrates Court last year there was no dispute Woodhead stabbed and killed Mr Perry, but his state of mind at the time of the incident would be explored.

Woodhead's murder trial will begin on September 28.