Katia Pyliotis, 38, is seeking to have her fifth murder trial case thrown out after a diary was found allegedly containing evidence of a confession made by somebody else.

On Wednesday Ms Pyliotis was bailed at the Supreme Court of Victoria where she is on trial for the murder of Elia Abdelmessihwho was found bludgeoned in his apartment in 2005 beside a bloodstained statue of the Virgin Mary and other bloodied items.

Her defence counsel suggested he would apply for a permanent stay of proceedings due to the discovery of the diary reports news.com.au.

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In 2016 Ms Pyliotis was arrested and was convicted in 2019 after three mistrials.

On 27 May of this year Victoria’s Court of Appeal overturned the conviction and ordered the case be heard by a jury for the fifth time.

In that time the diary of a police officer was discovered in a storage facility, allegedly containing evidence of a third murder confession made by Susan Reddie.

Ms Reddie sometimes had sex with the murdered man in exchange for money and had an acquired brain injury, dying in 2012.

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News.com.au reported Ms Pyliotis’ lawyer Dermot Dann, QC, said on Wednesday the discovery of the diary was a “stunning, if not shocking, development”.

The court previously heard Ms Reddie had made two previous confessions but the prosecution alleged she had recanted the confessions to Victoria Police Detective Senior Constable Warren Ryan.

Mr Dann alleges the diary does not contain any details of Ms Reddie recanting her confession to Mr Ryan, but instead there was a third confession noted.

Murder victim, Elia Abdelmessih Photo: Screen-grab 9NEWS

“Not only is there no note of any recantation, but there are notes of a third confession,” Mr Dann said.

“There are details of that confession that are very significant … including a description of what the crown allege is one of the murder weapons.

“That’s the kind of detail that only the killer would know.”

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Supreme Court Justice Elizabeth Hollingworth said, “I am prepared to say that the prosecution case has undoubtedly been weakened by recent developments,” amidst other claims that there is evidence Ms Reddie was not at the scene of the murder.

Justice Hollingworth granted Ms Pyliotis bail on the understanding she did not appear to be an obvious risk of reoffending or flight and that her mother had put up $100,000 against the family home as surety.

The application for a permanent stay of proceedings will be heard on 12 October.