Timothy Devey, 51, of Garden Street, entered not guilty pleas in the Warrnambool Magistrates Court on Wednesday after he was committed to stand trial on charges of murder and committing an indictable offence on bail.

Police allege Mr Devey stabbed 45-year-old Warrnambool man Craig Blachford in the abdomen, causing fatal injuries on December 7, 2018.

A police brief tendered to the court alleged Mr Devey attended a Cramer Street address at 8.42am that day following a discussion with the occupant Paul O'Gorman about a $150 debt owed to the victim.

It is alleged Mr Devey, Mr Blachford and Mr O'Gorman began drinking heavily at the property. The mood allegedly became hostile and Mr Blachford became frustrated and angry with the accused.

The victim allegedly began punching the head of the accused who was wearing a bike helmet.

Police alleged Mr Devey then used a concealed knife to stab the victim in the stomach. The knife allegedly extended through the liver and pierced the victim's diaphragm.

Mr Blachford was transported by ambulance to Warrnambool Base Hospital, where he underwent surgery but did not survive.

The accused was arrested at his property.

He has pleaded not guilty to the offence on the grounds of self-defence.

Following the committal hearing, Mr Devey applied for trial bail. Lawyer James Fitzgerald said his client had long-standing health conditions, the possibility of losing his public housing and support from the National Disability Insurance Agency (NDIA).

He said Mr Devey had remained in custody since his arrest in December 2018 and had "suffered greatly" due to his deteriorating health.

But Victoria Police homicide squad Detective Senior Constable Vin Schalken said Mr Devey had a significant criminal history and a tendency to fabricate or exaggerate his health condition.

He said the accused was allegedly found in possession of a blade while in the Warrnambool police station cells on Tuesday.

The detective said Mr Devey's home was inhabitable and there were risks he would interfere with witnesses and evidence.

Magistrate Franz Holzer said he was not persuaded there were exceptional circumstances why Mr Devey should be released on trial bail, stating there was no drug and alcohol support on the NDIA plan and a high risk of Mr Devey re-offending and contaminating evidence.

Bail was refused and Mr Devey was remanded in custody until January 30 for a directions hearing in the Melbourne Supreme Court.

Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.