The 54-year-old allegedly pulled the sword on a 30-year-old man during an argument on Barina Avenue, Lake Heights, near Wollongong just after midday on Monday.

The younger man was picked up by a passing motorist, who drove him to Wollongong Hospital.

At about 9.30am on Tuesday, the 54-year-old was arrested and charged with wounding with intent to cause grievous bodily harm and possessing or using a prohibited weapon without a permit.

Police say he was refused bail when he appeared before Wollongong Local Court on Tuesday and is due to reappear there on Wednesday.