UPDATE: A BODY has been located following an explosion and fire at a home in southeast Melbourne.
Police said there was an explosion in the garage of the Casey Drive, Berwick, home about 4am, with the subsequent fire spreading to the home and causing extensive damage.
Police said a body was located at the property about 8.15am, however investigators have not been able to identify who it is at this point.
Two men were in the house at the time.
Detectives from the Arson and Explosives Squad and Casey Crime Investigation Unit are at the scene investigating the cause of the explosion.
An Ambulance Victoria spokeswoman said a man, believed to be in his 50s, was treated by paramedics for minor smoke inhalation at the scene.
The man told paramedics he did not need to go to hospital, she said.