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Officers responded to reports of a stabbing on Mazurek Way, Haydon End around 1.30pm in which an 18-year-old man from the town died.
A 20-year-old man, also arrested on suspicion of murder shortly afterwards, has now been released under investigation.
Whilst formal identification has yet to be confirmed, we believe we know the identity of the victim and his next of kin have been informed.
Detective Chief Inspector Phil Walker, of the Murder Crime Investigation Team said: “This is a fast-paced investigation and we are exploring many lines of enquiries.
"We recognise this will have had a huge impact on the local community and we are heartened by the large number of people who are coming forward with information to help with our enquiries.
"Please do get in touch, even the most seemingly insignificant piece of information can sometimes be a vital element in our investigation.”
You can contact us on 101 quoting Operation Glendale, or anonymously with CrimeStoppers on 0800 555 111.