One of three men arrested over the alleged murder of an Australian father in Bali has told 7NEWS he is innocent.

Mevlut Coskun, 22, and his two co-accused were taken by heavily-armed police on a dramatic re-construction tour of the Munggu villa where Melbourne man Zivan Radmanovic, 32, and his friend Sanar Ghanim, 34, were shot in mid-June.

WATCH THE VIDEO ABOVE: One of three men suspected of murdering Australian father says he is innocent.

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Radmanovic died, while Ghanim was seriously injured but survived.

Speaking to media for the first time since the “Bali 3” were arrested and dragged back to the holiday island, Coskun told 7NEWS he was “not guilty” and said “yes” when asked by 7NEWS if he would fight criminal charges, should they be laid.

He also claimed the conditions he was facing in prison are “terrible”.

Bali’s police chief, Daniel Adityajaya, previously alleged Melbourne men Coskun, 22, and Paea-I-Middlemore, 26 carried out the killing.

Sydney man Darcy Francesco Jenson, 27, is alleged to have helped plan and facilitate the murder, including by providing getaway cars.

During the reconstruction on Wednesday, the trio were dressed in the disguises they allegedly wore on the night of the shooting, along with balaclavas and leg chains.

This phase of major investigations in Indonesia often indicates formal charges will be laid soon.

Two guns suspected of being used in the alleged murder of the father-of-six have been recovered, according to authorities.

It is understood police will complete their official investigation soon and then hand the case over to prosecutors and the courts.

If found guilty of pre-mediated murder the Australian men could receive the death penalty and face a firing squad execution.

Radmanovic’s wife said last month that he was “loving” and the “best dad in the world”.