About 9.30pm yesterday (Wednesday July 10) police will allege a 27-year-old man attended a motel in Merimbula and produced a knife on two employees, before demanding money from the safe.

The man allegedly took mobile phones and car keys from the two employees, before leaving the premises in a Holden Commodore registered to the business.

Police were called to the scene and attended a short time later.

Shortly after 10pm, the vehicle was located by officers from Traffic and Highway Patrol, who indicated for the vehicle to stop.

A pursuit was initiated and was terminated shortly after.

The man was arrested and taken to Bega Police Station, where he was charged with armed robbery, take and drive conveyance, drive without a licence, possess prohibited drug and police pursuit.

He was bail refused and is due to appear before Narooma Local Court today (Thursday July 11).