Shahdad Pouresmaeilieh, 44, and a seriously injured woman, were found above the Dragon House takeaway in Elliot Street, Newsham, Blyth, on Thursday.

The victim had lived in the area for the past 12 years, police said.

Officers say they have recovered a firearm from the scene, which they think was involved in the killing.

Northumbria Police said officers believed all those involved were known to each other and that the incident was between individuals rather than communities.

Two men arrested in connection with the incident have been bailed pending further inquiries.

A third remains in custody and continues to help police with inquiries.

On Saturday magistrates granted police a further 36 hours to question him.

In a statement Mr Pouresmaeilieh's family said: "Shahdad was a well-respected businessman, with interests in Newcastle, and around the area.

"He was a gentle, considerate person and our family are devastated at his violent untimely death."

Detective Chief Inspector Roger Ford said: "I would urge anyone who was in the vicinity of the nearby licensed premises and the takeaway, who may have seen or heard anything suspicious or have information which may help the inquiry, to contact us as a matter of priority as they could have vital information."

A post-mortem examination revealed Mr Pouresmaeilieh, who has been in the UK for 12 years and lived in Newbiggin-by-the-Sea, died from a single gunshot wound to the head.

A 45-year-old woman remains in a critical condition in hospital after undergoing emergency surgery.

Anyone who has information should contact officers on 08456 043043.