US police are searching for more possible victims of a suspected killer who left three women's bodies wrapped in plastic around a rundown neighbourhood in East Cleveland, Ohio.

Michael Madison, 35, was arrested after authorities found the bodies near his apartment building at the weekend.

Neighbours' complaints of a "pungent" smell triggered the search.

"This unfortunately is the absolute worst-case scenario," East Cleveland mayor Gary Norton said.

Volunteers and police are searching empty lots and vacant buildings in the area, with officials warning there may be more victims.

"We do believe there may be at least one or two more people involved here - what I mean is it may be one or two more victims," East Cleveland police chief Ralph Spotts said.

"That's another reason why we're doing this."

One of the bodies was found in the garage where Madison lived. ( Reuters: Kim Palmer )

The bodies, two of which were found by trained cadaver-smelling dogs, were located in a garage, the basement of a building and in a lot near where Madison lived.

Madison is a registered sex offender who pleaded guilty to attempted rape in 2002, according to Cuyahoga County court records.

He was arrested after a stand-off at his mother's home not far from the crime scene on Saturday.

He is now in an East Cleveland jail.

The bodies were "in states of advanced decomposition," the Cuyahoga County Medical Examiner's Office said in a statement, adding that the victims' identities and cause of death may not be released for several days.

Neighbours were shocked to learn Madison was a suspect in the killings.

"He's been in my step-mother's house before at a party or two. So I see this guy all the time. To me, he was a little odd," an unidentified neighbour said.

The discoveries were reminiscent of a 2009 incident when 11 bodies were found around the home of Cleveland's Anthony Sowell, who was convicted of murder two years later.

Reuters