Detectives believe a man involved in a heated argument is dead and are searching Melbourne’s northwest for his body and a gun.

The perplexing investigation began when a Meadow Heights man, 55, and his two associates attended a home at Wildwood about 7.20pm on Wednesday night.

The three men and the owner of the Wildwood home had a heated argument about an “ongoing dispute” before the homeowner shot the Meadow Heights man.

One bullet fired from the Wildwood man’s gun pierced the Meadow Heights man’s torso as his two associates fled.

The Wildwood man then loaded the injured man into the back of his ute and sped off.

Detectives believe the injured victim either “escaped” from the ute or was dropped at an unknown location.

Homicide squad detectives have taken over the job as they fear the victim has died.

Detective Inspector Leigh Howse said no one across the city had presented to hospital with a gunshot wound overnight.

“We think the victim may have succumbed to his injuries,” he said.

“We’ve got grave concerns for their welfare.”

The Wildwood man was seen at two service stations after midnight but the victim was not present.

Bizarrely, the Wildwood man’s clothes were found burnt on Lancefield Rd about 4am.

He was arrested by heavily-armed police once he returned home early on Thursday morning.

He is in custody and is set to be interviewed by detectives on Thursday.

Police are yet to locate the injured man or a firearm and are asking for the public’s assistance.

They are asking for witnesses who saw the injured man in the Greenvale, Sunbury, Bulla, Oaklands Junction or Wildwood areas to contact triple-0.

Police described the victim as being of Middle Eastern appearance and was last seen wearing dark clothing.

Detectives say the group, who are all known to each other, have no links to organised crime.