The leader of a civilian "self-defence" group in Mexico has been arrested for allegedly participating in the killings of two men, according to authorities.

Prosecutors say Hipólito Mora was detained on Tuesday after witnesses told investigators he and other members of his group took part in the killings in the town of Buenavista in the western state of Michoacán.

The burnt bodies of the victims were found on Saturday, according to a statement.

Mora was one of the founders of a vigilante movement that arose a year ago after he and fellow residents wearied of a drug cartel's demands for protection payments.

The federal government's envoy for Michoacán, Alfredo Castillo, said prosecutors have 48 hours to charge Mora or release him.