An alleged aggravated break and enter in suburban Newcastle, followed by a pursuit at Lake Macquarie, had police urging residents to stay indoors while a manhunt took place on Tuesday.
Emergency crews were called after a break-in at Kilpanie Road in Lambton. According to police, two sets of car keys were taken and both vehicles were stolen.
About 5.20am police spotted one of the vehicles "speeding through Charlestown" along Cadaga Road and a pursuit was initiated.
"They pursued the vehicle until it was deemed too dangerous and a risk to the public's safety," police said.
The vehicle was found on Hillsborough Road and its four occupants got out of the car and ran. The driver - who was not old enough to hold a licence - was arrested a short distance away. A ground search was launched to find the remaining offenders.
Officers warned residents to stay in their homes and to keep their dogs inside while the Police Dog Unit tracked three alleged offenders who were running through yards in the Percy Street, Robina Drive and Leroy Close.
"Police dog Xtra and his handler found the remaining three youths hiding under a house nearby," police said.
All were arrested at the Higham Road property and taken to Belmont police station, where they are expected to be charged.
Police are now calling for anyone with CCTV footage or dashcam which may assist the investigation to come forward.
The investigation is continuing.
