Victoria Police confirmed a man was killed at a rural address in Victoria's northeast shortly after 8.30am on Monday as part of the operation to locate Freeman.
He was wanted over the fatal shootings of police officers Neal Thompson and Vadim de Waart-Hottart, who were among a team of officers serving a warrant at Freeman's home in the small northeast Victorian town of Porepunkah in late August.
Victoria Police said no police officers were injured during the incident on Monday.
Multiple media outlets reported Freeman was the man killed.
"The state coroner will attend the scene and the investigation will be oversighted by Professional Standards Command, as per standard process for a police shooting," a spokesperson said.
"Further information will be released today as the situation develops."
Freeman, also known as Desmond Filby, had not been seen since fleeing into bushland near his home shortly after the shooting.
Detective Senior Constable Thompson, 59, was just a week away from retiring, while Senior Constable de Waart-Hottart, 34, was on temporary assignment to the area.
Hundreds of police from across Australia took part in the search in extreme conditions including snow and heat as well as dense bushland in mountainous terrain.
Investigators in December revealed they had shifted their search efforts to locating the body of the self-described "sovereign citizen", however a five-day effort to scour the bush with cadaver dogs and drones yielded nothing.
Victoria Police offered a $1 million reward and the possibility of indemnity for information leading to his capture, the largest financial offer in the state's history for facilitating an arrest.
Freeman's wife Mali, who police have confirmed was present during the fatal shootings, and a 15-year-old boy were previously arrested but released without charge.
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