Two Port Stephens police cars hit during high-speed pursuit through Nelson Bay, Salt Ash and Medowie

The chase allegedly began in Nelson Bay about 11.15pm and ended in Medowie about 11.50pm, but was followed by a short on-foot police pursuit into bushland to find and arrest the 38-year-old driver.

It is alleged that Port Stephens police officers attempted to flag down a Toyota Hilux ute being driven along Government Road as the driver, the 38-year-old man, was wanted on warrants.

The ute was directed to stop but it is alleged the driver instead accelerated and a pursuit through the three Port suburbs was initiated, with speeds reaching up to 130 kilometres per hour.

Two police vehicles were allegedly hit by the ute in Ferodale Road during the high-speed pursuit.

The police cars continued at low speed but sustained "significant damage", police said.

No officers were injured during the incident.

It is alleged about 11.50pm the driver left the ute on Federation Drive and ran into bushland.

Police said assistance was sought from PolAir with the crew locating the man hiding in bushland a short time late.

He was arrested without further incident.

When the ute was searched police seized a homemade firearm, a starter pistol, methamphetamine, and jewellery alleged to have been stolen

The driver was taken to Raymond Terrace Police Station where he was charged with three outstanding warrants including a conviction warrant, revocation of parole warrant and breach of correctives order.

He has been refused bail and appeared in Newcastle Local Court on Sunday.

Charges are pending relating to the pursuit and seizure of the firearms, drugs and jewellery, police said.

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