A man has been charged with murder after a suspected drug deal gone wrong at a home in Sydney’s south-west. 

A 32-year-old man was arrested at the scene and taken to Burwood Police Station, before being taken to hospital for an assessment.

He was released from hospital today and taken back to the police station, where he was charged with murder.

He was refused bail and will face Burwood Local Court later today.

A crime scene has been established at the home, and a homicide investigation is ongoing. 

Police have described the alleged murder as a “gruesome crime”.

”The man’s injuries are horrific,” Superintendent Christine McDonald, Burwood’s Police Area Commander, told reporters yesterday.

“And what we know from very preliminary investigations is that this, we believe this is a drug deal gone horribly wrong.”

McDonald said she didn’t believe the two men were related and it was unclear if they knew each other.

She also couldn’t say whose house it was or who else was there at the time.

Detectives are still searching for a second man who was last seen on Kembla Street on Monday afternoon.

He is described as being of Asian appearance, with a solid build and was last seen wearing black jumper with red symbols on the back, blue jeans, black shoes, a black hat and carrying a black satchel.

Anyone with information is urged to come forward and contact Crime Stoppers.