'Quite a revelation': Neighbour's chilling tale of cold case murder

A former Melbourne high school teacher who lives a few doors down from the Easey Street murder home in Collingwood has told of another neighbour's chilling encounter with the alleged killer.

Hugh Parry-Jones, a retired high school history teacher, told A Current Affair he moved into Easey Street 10 years after the murders and befriended an elderly woman who lived next door to the home where Suzanne Armstrong and Susan Bartlett were stabbed to death.

He said the woman, only known as Mrs Coventry, told him about the "very hot night" in January 1977.

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"She was sitting out the back of her house in the kitchen which looks straight across the kitchen to the murder house," Parry-Jones, who has lived on Easey Street for 37 years, told A Current Affair.

"She told me how she saw a bloke in there and at some later point he was washing his hands vigorously at the sink.

"Then he left, he went left out through the back door, through the laneway and out onto the street.

"I was really shocked when she told me that story.

"Her story was quite a revelation."

Perry Kouroumblis remains in custody in Italy, with Victoria Police detectives expected to fly to Rome in coming weeks to seek his extradition to Victoria.

He has not been charged with any offence.

Mrs Coventry has since died.