Mr Clarke, 19, is a suspect in relation to the theft of two vehicles.

He drove friend Josh Jell, 25, of Berwick, at Casey Hospital on April 11 suffering gunshot wounds.

Mr Jell died of his wounds.

Mr Jell had recently been in prison and there is a suggestion he may have been killed as part of a drug feud between dealers.

Warrnambool police were conducting investigations into the theft of BMW yesterday morning about 9am when they spotted a man, believed to be Mr Clarke, in his underwear picking flowers.

It is believed the man was heavily under the influence of drugs.

Police gave chase on foot, but the man evaded officers by jumping over a number of fences.

Soon after a black Holden Astra was stolen and police received reports it was being driven erratically around Warrnambool.

It was last seen heading east out of Warrnambool along the Princes Highway.

Late Wednesday the car was found near Gateway Plaza and it will be forensically examined by police officers today.

Mr Clarke is believed to be in Warrnambool to see his father Dion Clarke, 43, who is also well known to police.

Police said Mr Clarke senior is in the Warrnambool Base Hospital intensive care unit undergoing treatment for an unknown condition.

Mr Clarke was wanted for questioning by Victoria Police homicide squad detectives over the circumstances surrounding Mr Jell.

He has since been cleared by police of involvement in Mr Jell's death.

Mr Jell was close to Jessica Pennery-Keenan and her boyfriend Dylan Stone who were part of a major drug ring in Warrnambool.