The men were attacked at a house in Alma Street, Gosport, just before 7am yesterday morning.

The killings are believed to be the first double murder in the borough in recent history and an estimated 100 police officers have been working on the investigation.

Police have not formally identified the murdered men but it is understood their next of kin have been informed of their deaths.

Friends and neighbours named the pair as Matthew Stacey and Richard Bateman. Mr Bateman was a well-known man who many knew as 'Rich the Pill' or 'RTP' for short.

Police have so far not given any indication about the motive for the killings.

Neighbours in the surrounding streets heard arguments, screaming, running and then silence shortly before the police were called at 6.50am.

Mr Stacey had been stabbed in the back and was left to die in the street and his friend Mr Bateman was discovered inside a house in Alma Street, also knifed to death.

Officers found Mr Stacey lying near the junction of Forton Road with a trail of blood behind him, leading back to the place in Alma Street where the attack is thought to have taken place.

Near his body was a blood-soaked sweatshirt, which was taken away by police for forensic examination. It is thought officers have also recovered two knives that they believe might have been linked to the attacks.

He was taken to Queen Alexandra Hospital, where medical staff could not resuscitate him and he was pronounced dead.

Police then found Mr Bateman's body in the house.

Officers arrested three men within an hour and all were taken to separate police stations across the area. They were in custody to be further interviewed by police over the weekend.

A friend of the pair, who lived in nearby Alexandra Street, said: 'At about 6.40am I heard screaming I was in bed and there was just a lot of noise. I thought someone was mucking around, it sounded like someone was running, too, trying to get away from the screaming.

'Then I didn't hear anything else and it wasn't until a friend came round in the morning that I realised what had happened.'

Elizabeth Outram, 40, of Forton Road, said: 'I heard what sounded like two people arguing, then a lot of noise but I couldn't tell what was happening. My dog was barking like mad, but I took no notice and went back to sleep.'

When police arrived they cordoned off Alma Road, sections of surrounding roads and 100 yards of the westbound carriageway of Forton Road.

A section of Whitworth Close, about half a mile away was also condoned off after a suspect was rugby tackled and arrested by an officer.

Superintendent Phil Winchester, who is investigating the incident said: 'This is an exceptionally rare incident for Gosport.