Budapest- Hungarian authorities are investigating the disappearance of a German man who is believed to be the victim of an axe murder.

According to authorities, the 72-year-old man had lived in Hungary for 12 years. His last residence was in Balotaszallas, 150 kilometres south of Budapest.

The German was allegedly hacked to death by a 20-year old Hungarian in a murder-robbery. The Hungarian then allegedly burned the body parts.

The younger man denied any involvement with the crime. But police reported that they had discovered some of the older man's possessions in his home. The younger man was taken into custody Monday, according to police from the city of Kecskemet, the regional capital.

The German man, who had Hungarian ancestry, was a retiree. He kept to himself and he was not reported missing until neighbours realized they had not seen a trace of him for days.

The murder is alleged to have been committed on October 12. According to the authorities, the younger man had been living in the older man's home for three weeks.

After being alerted, police found a bloody axe outside the man's house. They also found human bones in an ash pit. Police had yet to conclusively link those bones to the missing man, but said all indications pointed to the bones belonging to the missing retiree. (dpa)