A Bali police spokesperson has retracted an earlier statement that they arrested a suspect related to the shooting death of an Australian — and the injuring of another.
Earlier, a police spokesperson said they could not name a person they had arrested but said they were a suspect and were still investigating.
Zivan Radmanovic, 32, was killed on Saturday when two men broke into the villa he was staying in near the Bali tourist hotspot Canggu.
His wife told police she was woken by her husband's screams before a man in an orange jacket shot him.
Another Australian, Sanar Ghanim, was badly injured and is being treated in a Bali hospital.
The Bali police spokesperson has said previously that they alerted airports and other ports of exit shortly after the shooting in the hope of stopping the attackers leaving the island.
Dudut Rustyadi, a forensic section doctor at Prof. Ngoerah Hospital, said they are waiting on permission from the family to conduct an autopsy of Mr Radmanovic.
Witnesses heard men with Aussie accents flee scene
Police said the victim had been shot twice in the chest and once in his right foot, while he had cuts on his face and shoulder.
Witnesses saw two men fleeing after the shooting and said they had thick Australian accents.
Two Balinese witnesses said they left their rooms in the complex when they heard gunshots and explosions.
They said they peered through a door crack to see a man on a scooter in a green "online ride-hailing" jacket, dark helmet and a face mask or cover, who said "I can't start my bike" in a strong Australian accent.
Once the bike did start, they said it headed west.
The witnesses left to find the villa door destroyed and lots of blood inside.
Police were scouring the villa on Saturday and gunshot holes in the windows were visible from outside.
They found 17 bullet casings, two intact projectiles and 55 bullet fragments, an official statement said.