Step 1: Factorize the given equation.
Given,
\[
xy-4x-4y+16=0
\]
Factorizing,
\[
(x-4)(y-4)=0
\]
Thus, the equation represents the pair of lines
\[
x=4
\]
and
\[
y=4
\]
The third line is
\[
x+y=5
\]
Hence, the triangle is formed by the lines
\[
x=4,\quad y=4,\quad x+y=5
\]
Step 2: Observe the symmetry of the triangle.
The lines
\[
x=4
\]
and
\[
y=4
\]
are symmetric with respect to the line
\[
x=y
\]
Also, the line
\[
x+y=5
\]
intersects them symmetrically.
Therefore, the triangle formed is symmetric about the line
\[
x=y
\]
Step 3: Use the property of incentre.
The incentre of a triangle always lies on the axis of symmetry of the triangle.
Hence, the locus of the incentre is
\[
x=y
\]
That is,
\[
x-y=0
\]
Step 4: Final conclusion.
Therefore,
\[
\boxed{x-y=0}
\]