OUTBACK murder suspect Bradley Murdoch was today involved in heated exchanges over the alleged death of Huddersfield backpacker Peter Falconio.

Murdoch denied he shot Mr Falconio on an Australian highway and wrapped his head in a denim jacket owned by the dead man's girlfriend, Joanne Lees, so that Mr Falconio's blood did not stain his vehicle when he moved the body.

Miss Lees's jacket has never been found.

And during questioning by prosecutor Mr Rex Wild, Murdoch repeatedly said "No" to a series of suggestions that were put to him.

The defendant denied that he followed the young couple's camper van up the Stuart Highway on July 14, 2001, the day of the attack.

He also denied that he saw a woman who appeared to be alone, that he pulled over the camper van, met the driver at the back of the vehicle and shot him dead.

He again denied threatening and assaulting Miss Lees, formerly of Almondbury, forcing her out on to the gravel at the side of the road and tying her up with handcuffs.

Murdoch has denied murdering 28-year-old Mr Falconio.

He has also pleaded not guilty to the abduction of Miss Lees and to assaulting her.

Mr Wild suggested that Murdoch made the handcuffs in Sedan in front of former business associate James Hepi.

"No, I did not," Murdoch said.

The defendant denied that he had ever made such handcuffs, that he forced Miss Lees into his vehicle and that he had to move Mr Falconio's body that was on the roadway.

He also denied panicking and fleeing to Alice Springs to fill up his vehicle with fuel so that he could get across the Tanami track.

But Murdoch admitted he had shaved his beard off and cut his hair short when he returned to Broome.

He said this was "within a couple of days", not on the morning he returned as Mr Wild suggested.

Murdoch also denied changing the appearance of his vehicle "with some urgency".

He admitted that he stopped transporting drugs from 2001, but denied that this was because he feared being "caught roaming around Australia".

"I did, but not because of that reason. It was time for Hepi to take over," Murdoch said.

Murdoch also denied moving the camper van, leaving his DNA on its gear stick and disposing of Mr Falconio's clothing and keyring.

"You're a fastidious man, you didn't want blood in your vehicle," Mr Wild said.

"I never had Peter Falconio in my vehicle," Murdoch said.

"You used the denim jacket to wrap his head in."

"No, I did not," said Murdoch.

Murdoch said he could not explain how a match to his DNA profile was found on a T-shirt worn by Miss Lees at the time of the attack, on the cable ties used to tie her hands behind her back, and on the gear stick of the camper van.

Mr Wild said: "The reason you deny you were at the truck stop in Alice Springs is because it puts you in the frame for this murder."

"No. I was not at the truck stop," Murdoch said.

Closing his cross-examination, Mr Wild said: "I put to you that what happened on July 14, that you murdered Peter Falconio and you disposed of his body."

"No I did not," Murdoch said.

Earlier, Murdoch denied that he kept one of Miss Lees's hair ties as a "souvenir" of the attack.

The court was shown hair ties that were allegedly found with Murdoch's possessions when he was arrested, but he denied they were his.

The 15 jurors - six men and six women who will try the case and three reserves - have heard Murdoch used the hair ties as elastic bands.

The trial continues.