Revenge fire feared after seven-year-old girl and woman killed near fatal A66 crash
Valentina Foster, seven, and Natalie McDonald, 34, died in the blaze.
Police fear it was a revenge attack linked to the head-on crash that killed seven people, including two firearms officers.
Cleveland Police added that two men aged 23 and 31 have been arrested on suspicion of murder.
The fire broke out at 5.23 am on Wednesday in a house less than a mile from the site of the A66 crash on 22 August which left seven dead, including two police officers.
The two men remain in police custody following the blaze at an end-of-terrace property in Birchington Avenue, Grangetown, near Middlesbrough, police said.
The force said that a 48-year-old woman remains in a critical condition in the Royal Victoria Infirmary (RVI) in Newcastle.
Three other people suffered injuries which are believed to be non life-threatening.
The force said it was investigating what had happened but was "keeping an open mind and cannot rule out any links to wider organised crime at this time".
Redcar and Cleveland Local Policing Commander, Superintendent Emily Harrison, said: “This is a tragic incident which has sadly resulted in the deaths of a number of people this morning, and their families are being supported by specially trained officers.
“We are working to establish the circumstances of exactly what has happened, but we are keeping an open mind and cannot rule out any links to wider organised crime at this time.
“We will have a high visibility presence in the Grangetown area as this investigation progresses, and to provide reassurance to local communities, who will no doubt be impacted by this tragic incident.
“We encourage anyone who has concerns, or who may have information regarding the incident in the early hours of this morning, to approach one of our officers or to contact Cleveland Police on 101, or Crimestoppers anonymously.”
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