Police have arrested two men following an alleged armed robbery and pursuit near Newcastle this afternoon.

About 2.30pm (Monday 21 April 2014), officers from Newcastle City Local Area Command were called to licensed premises on Bridges Road at New Lambton, after reports of an armed robbery.

It’s alleged two men, armed with a firearm and knife, entered the club and threatened staff members. They were handed an amount of cash and fled in a blue Holden Commodore.

No one was injured during the robbery.

About 3pm, police were patrolling the suburb of Shortland when they saw a vehicle matching the description of the one allegedly involved in the earlier robbery.

A pursuit was initiated, during which police deployed road spikes just north of the Hexham Bridge.

The vehicle was later dumped on Scott Close at Raymond Terrace, with three men running from the scene.

Police gave chase and arrested two of the men following a brief foot pursuit. They were taken to Raymond Terrace Police Station where they remain in custody.

Inquiries into the matter are continuing and the search for the third man is ongoing.