Police have charged 20-year-old Codey Herrmann with rape and murder following the death of Arab-Israeli exchange student Aiia Maasarwe, whose body was found near a tram stop in Melbourne's north on Wednesday.

Key points: Aiia Maasarwe was an Arab-Israeli exchange student at La Trobe University

Aiia Maasarwe was an Arab-Israeli exchange student at La Trobe University Flowers continue to be laid at the site of her death in Bundoora

Flowers continue to be laid at the site of her death in Bundoora Police have charged Codey Herrmann with rape and murder

Ms Maasarwe, 21, was on her way home from a night out at a comedy club when she was attacked.

Her body was found behind a hedge outside a nearby shopping centre in Bundoora, about 100 metres from the tram stop, which is on the Route 86 tram line.

Herrmann was arrested in the adjacent suburb of Greensborough about 11:20am on Friday and held in police custody overnight.

He appeared at the Melbourne Magistrates' Court yesterday and was asked if he understood the charges, to which he replied: "Yes."

He has been remanded in custody to re-appear in court on Monday.

The charges follow an outpouring of grief from Melburnians overnight with hundreds gathering to pay their respects and to support Ms Maasarwe's father, who was present at a city vigil.

Students at La Trobe — where Ms Maasarwe was midway through a one-year exchange — held a vigil for her on Friday afternoon.

Police arrested Codey Herrmann on Friday. ( ABC News )

Another silent vigil took place on the steps of Victoria's Parliament House in the evening, and a special tram carrying only flowers departed from there at 8:01pm.

It followed the route of her final journey to Bundoora.