Two men in balaclavas allegedly equipped with guns have been charged after the pair were spotted near John Ibrahim's home in Sydney's ritzy eastern suburbs.
A neighbour alerted police about 8.20am on Thursday after noticing a man carrying a gun walking along a street in Dover Heights, which is dotted with multimillion-dollar clifftop houses.
They reported a man wearing a balaclava approaching a driver's car carrying a pistol. A short time later, the man left in a car.
Following inquiries, police observed the vehicle travelling along Old South Head Road, Bondi and attempted to stop it, however, the driver allegedly failed to stop and a pursuit was initiated.
The men were allegedly involved in a violent struggle after officers chased them by car to Old South Head Road at Bondi, where they were overpowered.
The 20-year-old was immediately arrested, but the 24-year-old fled on foot before being arrested nearby a short time later.
"We know that one of the males were out on the street with a firearm and witnesses called police," Detective Inspector Adam Solah told reporters.
A loaded semi-automatic pistol and a revolver were found in the car used by the men to flee the scene, police said.
The men have been charged with a string of offences related to possessing the illegal firearms, intimidation, running from police and even not wearing a seatbelt.
They have been refused bail and will appear at Waverley Local Court on Friday.
Det Insp Solah was unable to confirm whether Mr Ibrahim or any members of his family may have been the targets of a planned attack when pressed by reporters.
"The reason for them being there will form part of our lines of inquiry and at this stage the reasons for them being there haven't been ascertained," he said.
Detectives were seen at Mr Ibrahim's home on Thursday, but Det Insp Solah said officers had been speaking with everyone living in the area following the incident.
The former Kings Cross nightclub owner, his family and his associates have previously been the targets of violence, including the shooting of Mr Ibrahim's bodyguard in 2017.
All three of his brothers have been shot in various incidents dating back to 2009.
The arrested men were not from the local eastern suburbs area, Det Insp Solah added.
"It appears to be an isolated incident and we don't believe there's any further threats," he said.
Detectives were seen canvassing George Street to collect CCTV footage and speak to residents.
