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Murphy, 51, disappeared on February 4.
Stephenson was arrested early Wednesday morning and charged Thursday afternoon.
Police will provide an update on the case at 3.45pm on Thursday.
Stephenson is the only son of legendary AFL Tigers player Orren Stephenson, whose AFL career included playing for Geelong just over a decade ago.
Police confirmed the alleged killer would appear in the Ballarat Magistrates Court charged with murder on Thursday afternoon.
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