A GUNMAN who allegedly killed two police officers could be hiding in a cave as his family handed themselves in.

A major manhunt is still underway for Dezi Bird Freeman , 56, who allegedly gunned down "execution style" three officers who were conducting a search warrant at a property in Porepunkah, Australia on Tuesday morning .

Police sources told the Herald Sun it was a “straight-out execution” when Freeman allegedly opened fire with a shotgun as officers entered a bus where he and his family live.

A 59-year-old detective, just days from retirement, and a 35-year-old senior constable were killed in the horror attack.

A third officer, meanwhile, was shot in the thigh and is undergoing surgery in a Melbourne hospital .

The remaining seven members of the 10-officer team were

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