The Real IRA has admitted killing 31 year old Kieran Doherty, whose naked and bound body was found on the Braehill Road in Derry on Wednesday night with a bullet wound to the head.
In January, Mr Doherty denied involvement in the cannabis haul found in a house at Carrigans.
Mr Doherty, a former Republican Prisoner, said he had placed an ad in the local press seeking tenants for the house, but had no further involvement in it.
Last month, the PSNI searched his home in an operation believed to have been linked to the discovery of 500,000 euros worth of cannabis in a house in Carrigans.
Mr Doherty told the Journal that he had no involvement with the drugs, and the house belonged to a Republican prisoner whom he had met in Portlaoise prison. The owner of the house was found dead in a house in County Meath earlier this month.
Three months ago, Kieran Doherty claimed in an interview with the Derry Journal newspaper that MI5 had approached him and attempted to recruit him as an informer while he was trying to set up a cigarette manufacturing company.
According to the paper, he was repeatedly turned down for a licence by Revenue and Customs and had then been approached by an MI5 agent.