POLICE believe teenager Prue Bird was abducted and murdered more than 20 years ago on the orders of one of Australia's most notorious criminals to punish the star witness who testified against him.

The men who in 1986 detonated a massive car bomb in Russell Street, Melbourne, killing Constable Angela Taylor and injuring 21 others, are now being investigated over the Bird murder. The key witness against the bombers was career criminal Paul Kurt Hetzel, who was living with Prue's grandmother when the schoolgirl disappeared.

The scene of the Russell Street bombing, which killed policewoman Angela Taylor.

Detectives allege that as the gang could not find Hetzel, who was under police protection, at least one of the bombers decided to organise the murder of the 13-year-old.

Police know that, before the teenager went missing, one gang member commissioned two gunmen to travel to Perth in a failed attempt to locate Hetzel.