A man's body was found in the kitchen of the farm, which operated as a caravan park.

Det Ch Supt Peter Ackerley: 'Horrific deaths'

After a search of the surrounding area, Mrs Davies's body was discovered in an outhouse.

The motive for the attack is unclear but police have indicated that it may have been the result of a botched burglary.

Detectives want to trace the dead man's Red Skoda Felicia - registration S516 XCA - which they believe may have been used to drive away from the murder scene.

Forensic teams were continuing to search the farm, which is situated close to the International Eisteddfod site, for clues.

A Home Office pathologist was trying to establish the precise cause of death although early indications were of "blunt force trauma".

Police discovered there had been some disturbance and when they went into the kitchen they discovered the body of an elderly man

Det Ch Supt Peter Ackerley, North Wales Police

The narrow country road leading up to the farm has been cordoned off while the scenes of crime officers gather evidence.

An incident room has been set up at Wrexham police station.

Detective Chief Superintendent Peter Ackerley who is leading the investigation said: "We're investigating the horrific deaths of two elderly people.

Police activity

"It is a small holding with a limited number of cattle and it is managed by an elderly lady, who was assisted by a friend, who lives outside north Wales.

"Shortly after 1.20am we received a call from the occupier's brother-in-law after they visited the farm earlier that evening and found it insecure.

"Police discovered that there had been some disturbance and when they went into the kitchen they discovered the body of an elderly man."

Assembly Member Karen Sinclair, who lives one mile from the murder scene, said it had been "an awful day for Llangollen".

"The mood is one of extreme shock. This is quite a sleepy place and you do not expect something of this extreme nature to happen on your doorstep.

"I knew Elsie relatively well. This has been quite an emotional trauma for the neighbours and as the news has evolved during the day, the shock has become greater. It is quite an awful day for Llangollen."

She added: "People want to know if this was a chance thing, which would be frightening, or something going on within the group of people involved."

Silian Evans: 'Woods were closed off'

Neighbour Silian Evans said he was first told the woods had been closed off to the public near to the farm.

"I normally take my dog for a walk there in the morning and I heard somebody had been shot," he said.

An eyewitness said he had been woken up by police activity.

"I saw the force's helicopter circling above the river in Llangollen in the early hours and this morning there were roads closed."

A police spokeswoman was unable to say how the alarm was raised or whether there had been a break-in at the farm.