Two men have been arrested following an armed robbery at a hotel in Raby last night.

Shortly after 8.30pm, (Monday 13 June), police were called to a hotel on Spitfire Drive, following reports of an armed robbery in progress.

Upon arrival, police spoke to staff and patrons who informed them that two men, one armed with firearm, entered the hotel threatening staff and demanding cash.

Staff members handed over an amount of cash before the two men fled the premises into a Holden Commodore that was waiting outside, being driven by a third offender.

A description of the vehicle and the two men was broadcast via police radio.

Officers en route to the hotel allegedly saw the vehicle in Williamson Road, Ingleburn, and a short pursuit took place.

The vehicle was pursued into First Avenue, Macquarie Fields where the driver stopped. He was arrested by police while the other two occupants fled on foot.

Officers pursued and caught one of the men, while the second man managed to escape.

Crime scenes have been established and specialist officers have been called in to assist.

The two men who were arrested have been taken to Macquarie Fields Police station where charges are expected to be laid.

A search of the offending vehicle has allegedly recovered a firearm and an amount of cash.

Inquiries are continuing.