Dezi Freeman has been on the run since August 26 after allegedly shooting dead Neal Thompson and Vadim de Waart-Hottart as they served a search warrant at his home in Porepunkah.
The 56-year-old fled into dense bushland from the mountainous town about 300km northeast of Melbourne.
Police confirmed on Wednesday they were in the Benalla area, about 100km west of Porepunkah, as part of a "planned operation".
"There is no immediate risk to community safety," it said in a statement.
"This forms part of the ongoing investigation in the Porepunkah area in the search for Desmond Freeman, we will not be providing further comment on operational activities."
The development comes after the force confirmed the search had been scaled back, with police numbers falling from more than 400 to about 200.
Officers, including specialist teams from interstate and abroad, have searched more than 40 square kilometres of land by foot and air in the hunt for Freeman.
Police have received 1400 pieces of information from the public and daily offers of resource support from commissioners around Australia and New Zealand.
People in the area have been told to remain vigilant and not approach Freeman, who is considered armed and dangerous, if they spot him.
Victoria Police have offered a $1 million reward and the possibility of indemnity for information leading to his capture, the largest financial offer in the state's history for facilitating an arrest.
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