One of Australia’s most influential Aboriginal leaders is in mourning for his nephew who is believed to have committed suicide after being involved in a stabbing incident just hours after dancing for the Prime Minister.

Galarrwuy Yunupingu is said to be “deeply distressed” by the death of his nephew Nicky, who was found hanged last week after a tragic series of events which began soon after an historic cabinet meeting in the remote Northern Territory community of Yirrkala.

The 26-year-old had been part of a tribal dance group who performed for Prime Minister Kevin Rudd during a visit to Arnhem Land in far northern eastern Australia.

Nicky, who plays didgeridoo in the internationally renowned Aboriginal band Yothu Yindi, was part of a group of dancers chosen by his uncle to perform for Mr Rudd, after the Prime Minister announced that the government would begin moves to acknowledge the indigenous people in Australia's constitution.

During the visit Galarrwuy presented the Prime Minister with a petition – symbolically on bark – calling for the protection and recognition of indigenous people in Australia’s Constitution.

According to reports, the tragedy happened later that night after the community celebrated the positive outcome of the day’s meetings, during which Mr Rudd announced that the Australian Government would begin talks over the proposed constitutional ammendment.

Nicky reportedly got into an argument with a 23-year-old woman, who was a friend, which resulted in him stabbing her 14 times. Then, believing her to be dead, Nicky apparently hung himself and was later found by his wife.

A Northern Territory police spokeswoman told the Sydney Morning Herald: “police are investigating a serious assault which occurred on July 23 in which a 23-year-old woman received multiple stab wounds and a 26-year-old man, believed to be the offender, was later found deceased. Due to the obvious sensitivity around this matter police can only provide very limited detail.”

On Monday Galarrwuy, who considered Nicky as a “son” said that he was in mourning at his home in Arnhem Land: “This is an intensely private matter and I am deeply distressed by the media intrusion. It is a terrible breach of the family’s privacy and will simply worsen our pain and our grief.”

He said that since his nephew’s death he had asked health services to develop a plan to deal with the “increasing prevalence of self-harm among young people in Arnhem Land.”

A spokesman for Mr Rudd said: “This is a deeply sad and tragic event for all the families and community of Yirrkala and we pass on our deep condolences to the families and community.”

The injured woman remains in hospital in a stable condition.

The tragedy has rocked the Aboriginal community, and in particular the extended Yunupingu clan, who are enormously influential in Australia’s political and cultural communities.

Galarrwuy, 60, who was Australian of the Year in 1978, is the leader of the Gumatj clan of the Yolngu people in Arnhem Land. He was also chair of the Northern Territory land council for 20 years and was awarded a Member of the Order of Australia (AM) in 1985.

Galarrwuy’s younger brother is Mandawuy, the singer and head of the band Yothu Yindi, who received international acclaim with their 1991 hit single Treaty. The song was a plea for reconciliation and became the first song in an Aboriginal language to gain extensive airplay and international recognition. Mandawuy was also Australian of the Year (in 1994).

Other members of the Yunupingu clan are also involved in music, including Gapanbulu, who also plays in Yothu Yindi, and Geoffrey Gurrumul, a blind and extremely shy performer who recently released a critically-acclaimed album and supported Elton John on tour in April.

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