A 37-year-old man has been arrested in relation to the murder of Lance John Murphy.

Armed police executed a search warrant in Waihi overnight, arresting and charging the alleged suspect with kidnapping.

Armed police executed a search warrant in Waihi overnight in relation to the death of Lance John Murphy, pictured here. Photo: Supplied.

A 51-year-old man from Waiuku has been charged with Lance's murder and has been remanded to appear in the High Court in Auckland on January 27.

Lance's body was found by police in a rural property in Wellsford, north of Auckland, at the weekend.

The 56-year-old was last seen on November 21 and an investigation was launched when his sister reported his disappearance to police.

Lance's red Mazda 6 car was found five days later on a property owned by the man arrested in Waihi last night.

Detective Inspector Uraia Vakaruru says Lance's blood was found throughout the vehicle.

'Initial forensic tests indicate that it is his blood.”

The man arrested last night is due to appear in Manukau District Court today and police say further charges have not been ruled out.

"Police would like to thank members of the public who provided vital information which led to this arrest."