A High Court judge in Belfast has been told that DNA evidence will link a 43-year-old woman to the killing of her neighbour in Newry on Christmas Day.
Karen Walsh, a pharmacist, denies murdering 81-year-old Maire Rankin at her home on the Dublin Road.
Karen Walsh was re-arrested and appeared at Newry Magistrates' Court on Monday, when the PSNI failed to revoke her bail.
Because of a prosecution appeal, she remained in custody and was at the High Court in Belfast for her case today.
Her husband Richard Durkin was in the public gallery along with several of Maire Rankin's family.
A PSNI detective told the court the results of forensic tests had established a DNA link to Karen Walsh with the bottom of a broken crucifix found lying beside Mrs Rankin's body.
The court heard partial profiles matching Karen Walsh were also discovered on the pensioner's breast, thigh and a shaft of hair.
Having listened to both sides Lord Justice Coghlin strengthened the bail conditions.
He ordered Karen Walsh, who has been living in Dublin, to reside in the Belfast area and to report daily to police.
