A FIVE-YEAR investigation into the brutal murder of Julie Smailes was brought to a dramatic halt yesterday when the case against a man accused of killing her was dropped.

Last night, in an extraordinary move, the detective leading the inquiry conceded it had been stalled by the refusal of witnesses to give evidence in court.

The murder charge against Darren Willis, 30, was discontinued by the Crown Prosecution Service due to a lack of evidence.

Detective Superintendent Tom Ryan said he and officers from the major crime team believed they now had a clear picture of how Julie met her death and knew the identities of those involved.

But, he said: "Until witnesses are prepared to repeat information they have given us to a jury, or laboratory tests turn up new scientific information, then I am afraid we have gone as far as we can for the moment."

He added: "Although we have reached this impasse, there is no question of closing the investigation.

"We remain resolute in our determination to pursue those responsible and bring them before a court."

Julie, 27, died in 1996, at her home in Wingrove Terrace, Leadgate, near Consett, County Durham.

She had been tied up, strangled and stabbed more than 50 times, before her home was set alight to cover the killers' tracks.

Police revealed two years ago that mounting evidence suggested up to four people may have been directly implicated in Julie's killing.

Det Supt Ryan said: "Our belief that two people were responsible for killing Julie, and others were involved afterwards in trying to cover up the murder and destroy evidence, has not changed."

He said weighty information continued to point to suicide victim John Thompson as one of the two men who were in the house at the time Julie met her death.

In August 1998, Thompson's body was found hanging from a tree in a wooded ravine near his home in Moorside, Consett.

The discovery was made days after teenage babysitter Rachel Tough was found dead with head injuries in Thompson's home.

Mr Willis, of Park Villas, Leadgate, was arrested and charged with Julie's murder days short of the fifth anniversary of her death.

Det Supt Ryan said there had been close consultation between the police and the CPS during the weeks leading to the agreement to halt proceedings.

He said people who had given police information about the crime had not made statements, either because they felt intimidated or through misplaced loyalty.

"The decision by the CPS does not, of course, preclude us from arresting or re-arresting anyone should additional forensic evidence or witness statements present themselves," said Det Supt Ryan.

"There is no doubting there are people in Derwentside who have evidence that would bring those responsible before a court and we would appeal to them to come forward."