A co-worker accused of murdering Dunedin woman Karin Ann Ross has pleaded not guilty and a trial has been set for October.

Alexander James William Merritt, 21, of Dunedin, entered the plea when he appeared in the High Court at Dunedin via audio-visual link this morning.

Merritt is accused of murdering Ms Ross on December 2 last year.

The 51-year-old's body was discovered by a member of the public in the car park of Spotless cleaning services in Strathallan St, where she worked.

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Police have not commented on the nature of Ms Ross' death, but it is understood it was violent.

As defence counsel Anne Stevens entered Merritt's plea, people in the public gallery cried out in disgust.

"F***'s sake - it's bulls**t,'' one woman yelled.

Merritt, who until today had interim name suppression, was remanded in custody.

His name suppression lapsed and no further application was entered. The trial is set for October 3.