The victim has been named locally as Elias Louisy, 73, who is reportedly a British man who retired to the Caribbean paradise with his wife Muriel several years ago.
Elias died on Monday after being rushed to hospital following the attack at his home in the village of Desruisseaux.
Muriel, who was also assaulted by the suspect, is being treated for serious injuries at a local hospital.
Three men have been questioned in connection with the murder which is reportedly being linked to a land dispute and not a robbery.
According to local media, the intruder, armed with a large cutlass-style blade, broke in through a window.
A source close to the family described the incident to the St Lucia Times.
The victims were leaving the house when Muriel, who was outside, reportedly noticed that her husband was still inside.
When she entered the home, she is said to have seen the killer standing over her wounded husband with his weapon raised.
She started screaming, prompting the intruder to attack her before fleeing.
The couple reportedly retired to Desruisseaux from London several years ago.
Located on the south of the island, it is the hometown of former England striker Jermaine Defoe’s mother’s family.
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