Outback tourist gunman still at large

SYDNEY, Australia -- Police have all but cleared a man arrested Tuesday of being involved in an ambush of two British tourists in Australia's remote Northern Territory.

The man, who fitted descriptions of the wanted man and was driving a similar vehicle, has however been charged with minor unrelated driving and drug charges.

British tourist Peter Falconio, feared shot dead by the gunman, has not been found since he and his girlfriend Joanne Lees were reportedly ambushed on the isolated Stuart Highway in the Northern Territory on July 14.

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The gunman flagged down the tourists, pretending there was something wrong with their Volkswagen van.

When Falconio and the gunman walked to the rear of the van, Lees heard a gunshot. She was then dragged away, bound and gagged.

She managed to escape into the bush where she was hunted by the gunman and his dog. Lees evaded the gunman and finally flagged down a passing truck.

A massive police manhunt with aircraft and Aboriginal trackers over the Northern Territory, an area five times the size of Britain, has failed to find the gunman or Falconio.

But on Tuesday a man fitting Lee's description of the gunman was arrested in Sydney.

Like the gunman, the man had long black hair, was driving a dusty utility truck with a canopy and had a similar dog in the back.

But Northern Territory police commander Max Pope told a morning television program that after 12 hours of questioning, investigators were now convinced this man is not the Outback gunman.

Pope said the man's mobile phone records had provided a solid alibi indicating he was not anywhere near the site of the incident at the time it had occurred.

Police would not be able to conclusively rule out the man as a suspect until forensic tests on his car were completed, he said.

Reuters contributed to this report.