A second man has been charged over a “gruesome” murder that police believe was the result of a drug deal gone wrong.

Officers found the victim, a man believed to be aged 29, stabbed to death at about 5pm on Monday at a home in Croydon Park, in Sydney’s inner west.

Mohammad Sofwan Bin Mustafha, 32, was arrested at the scene and taken to hospital for assessment under police guard.

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He was later charged with murder and faced Burwood Local Court on Tuesday.

He did not apply for bail and will return to the same court on July 30.

A second man, aged 26, handed himself in on Tuesday, following a widespread appeal from police in which an image of the alleged suspect was released.

He was charged with conceal serious indictable offence of other, and was refused bail to appear before Burwood Local Court on Wednesday.

Superintendent Christine McDonald said the victim had still not been formally identified but police were “confident” he was a Malaysian national who had a wife and children.

She said police have been in contact with his family in Malaysia.

It’s believed all three men were known to each other, with the 32-year-old man allegedly living at the Croydon Park home where the crime took place.

The 36-year-old man was known to police and was on bail.

“We are confident that he was at the scene at the time of the murder, in relation to the role that he had to play, it’s (led) to him being charged for conceal serious indictable offence,” McDonald said.

She previously described the crime as “gruesome” and that the victim’s injuries were “horrific”.

On Wednesday, McDonald said she still stands by the theory that the incident was the result of a “drug deal gone horribly wrong”, but that police were still investigating how the victim came to be at the home.

“Certainly, we believe drugs were involved,” she said.

“We say so often that drugs ruin lives and families.”

A number of items have been seized from the home, however the weapon used in the murder remains unclear.

Police are not looking for anyone else in relation to the crime.

— With AAP