The young woman shot dead next to her husband on New Year's Eve in Yarraville has been remembered as "the most beautiful girl" who loved to dance to Michael Jackson and had a knack of turning any situation into fun.

Lindita Musai and her husband Veton were gunned down at their Salisbury Street home at about 10.30am on Tuesday, just two days after celebrating their first wedding anniversary.

Veton and Lindita Musai were shot outside their Yarraville home. Credit:Facebook/Veton Musai

Multiple sources have told The Age the suspect, a 55-year-old Altona North man, is Ms Musai's estranged father. He remained in a critical condition on Wednesday and under police guard.

Ms Musai, 25, died at the scene, while Mr Musai, 29, was rushed to hospital with critical injuries.