Outback killer Bradley John Murdoch, the man who murdered British backpacker Peter Falconio in 2001, has died from throat cancer at the age of 67.

Murdoch, who had never revealed the location of Falconio’s body, died on Tuesday night at a hospital in Alice Springs in the Northern Territory, a corrections spokesperson confirmed.

In a case that captured worldwide attention, Falconio, 28, was travelling around Australia with his girlfriend, Joanne Lees, when he was shot dead on a remote stretch of highway near the Northern Territory town of Barrow Creek, about 300km north of Alice Springs, in July 2001.

The pair were pulled over by Murdoch, who said their van might have an engine problem. Falconio went behind the car with Murdoch to investigate, and Lees heard a gunshot before Murdoch cable-tied her and covered her head.

Lees managed to escape and hide in bushland for five hours while pursued by Murdoch and his dog before flagging down a truck driver, while Falconio died from a gunshot wound to the head.

Murdoch was also convicted of the attempted kidnap and assault of Lees.

Falconio’s body has never been found, and Murdoch always maintained his innocence.

Last month police announced a new reward of up to $500,000 for information leading to the discovery of the remains of the murdered British backpacker.

Murdoch was convicted of murder and attempted kidnapping in 2005 and sentenced to life imprisonment with a non-parole period of 28 years.

The murder partly inspired the 2005 Australian horror film Wolf Creek.

While the high-profile trial was under way, an injunction on the release of Wolf Creek was placed by the Northern Territory court, in the belief it could influence the outcome of proceedings.

The film, which centred on the kidnapping of three young backpackers in their 20s on a return from a hike in Wolf Creek national park in the Western Australian outback, said in the tagline it was “based on true events”, including Ivan Milat’s hitchhiker murders from the early 1990s and the abduction and murder of Falconio.

The NT police acting commander, Mark Grieve, told reporters in June the murder had “captured the heart of the country” when it occurred and “never gone away”.

“We’ve never gone away as far as investigating it,” he said. “And it’s just something that’s captured worldwide attention.”

He said despite “continued efforts” by police to pursue any viable information or leads, Falconio’s body had never been located, leading to a renewed reward approaching the 24th anniversary of his death.

“The NT police still hold out hope that someone may be able to provide some vital information to assist in this search,” he said. “We think there’s still people out there that may hold some information.”

Grieve said police had interviewed Murdoch in recent weeks and made “numerous approaches” over the years to no avail. Police had also been in regular contact with Falconio’s family.

“He’s [Murdoch’s] not being too forthcoming in regards to engaging with police, but we will continue doing what we have to,” he said.

“There may be someone out there that he’s confided in, whether or not that’s family or friends, we just don’t know.

“Like any ongoing police investigation, you want to solve it, you want to try to at least bring some sliver of resolution to Peter’s family by bringing home his remains.”