A new $500,000 reward has been announced for information leading to the location of the remains of murdered backpacker Peter Falconio, NT Police have said, a day after reports that his killer Bradley John Murdoch is close to death.

Acting Commander Mark Grieve with the Crime and Intelligence Command made the announcement at a press conference today, that will see the previous reward of $250,000 doubled.

Murdoch was found guilty of Mr Falconio’s murder in 2005, and was sentenced to life imprisonment with a non-parole period of 28 years, meaning he would be eligible for parole in 2032. He was also convicted of other assault-related charges on Mr Falconio’s girlfriend Joanne Lees.

It was reported on Tuesday that Murdoch, 67, was recently transferred into palliative care in Alice Springs Hospital from the Alice Springs Correctional Centre.

He had been diagnosed with terminal throat cancer in 2019.

Acting Commander Mark Grieve said police had spoken to Murdoch numerous times over the years about the location of Mr Falconio’s body, but he had not provided assistance. The latest approach occurred this week, Cmmdr Grieve said.

“Unfortunately, the outcome of those conversations rest with Murdoch,” he said. “On all occasions he has chosen not to positively engage with police.”

Police hope the new increased reward of $500,000 might finally lead to the whereabouts of Mr Falconio’s remains.

“We recognise the passage of time that’s transpired, however it’s never too late to reach out and start that conversation with police,” A/Cmdr Grieve said.

“You just never know how beneficial that information that you may hold may be. Essentially, you just don’t know what you know.”

On July 14, 2001, Mr Falconio and Ms Lees were travelling on the the Stuart Hwy in a Volkswagen Kombi van north of Barrow Creek. Murdoch pulled up along side the van and gestured for the couple to pull over.

He then shot Mr Falconio in the head, killing him, and attempted to abduct Ms Lees. She hid in the bushes and was later rescued by a passing motorist.

Mr Falconio’s body has never been found and Murdoch has refused to tell police where it is.

“Murdoch hasn’t engaged with us, but there may be someone out there who he has confided in, whether or not that’s family or friends, we just don’t know,” A/Cmdr Grieve said.

Less than a month after his death NT Police offered a $250,000 reward for information leading to the discovery of his body. With inflation, that is the equivalent of about $350,000 today.

Murdoch has always maintained his innocence and unsuccessfully appealed his conviction twice, with the High Court refusing him special leave to appeal in 2007.

The NT passed a “no body no parole” law in 2016, meaning convicted killers are not eligible for parole if they do not provide the location of the victim’s body.