A 63-year-old man has been charged with murder and arson after an alleged violent incident in Wheatsheaf yesterday.
Stuart Lee was initially charged with attempted murder earlier today, after being arrested on Tuesday.
The charges have since changed after a 69-year-old man died this morning.
Mr Lee has been charged with murder, intentionally causing serious injury, and arson causing death.
Police said this morning an altercation broke out between the 69-year-old and a 63-year-old man just before 10.30am yesterday, at a property in Wheatsheaf.
"It is alleged there was an altercation which resulted in the victim being set alight," police said in a statement today.
The alleged victim was flown to the Alfred Hospital in Melbourne in a critical condition but died overnight.
Mr Lee did not make an appearance in court but remained in police custody.
In Ballarat Magistrates Court today, Mr Lee's legal counsel Andrew Mitra said the 63-year-old did not have any injuries.
Mr Mitra also said it was the man's first time in custody.
The matter will return to court at a later date.