The man, who at this stage cannot be named due to his involvement in an upcoming jury trial in the NSW District Court, repeatedly threatened to stab himself with a large knife during the September 19 standoff and tried to goad police into shooting him.

Officers negotiated with him for half an hour, during which time he told police he was terminally ill with lung cancer.

He eventually surrendered peacefully and was taken into custody, where he was charged with being armed with an offensive weapon intending to prevent arrest and having stolen goods, as well as other charges relating to the upcoming trial.

Police documents tendered to Wollongong Local Court on Friday said the 32-year-old was wanted on an outstanding arrest warrant when investigating officers learned he was at a house in Ocean Street.

Police who first arrived on the scene said they saw the man exit the house dressed in an official NSW Police Force shirt, however when he saw the officers he retreated back inside the house and locked the door.

Officers immediately locked down the street, called for backup and set up a perimetre around the house. A short time later a female exited the house and surrendered to police, at which time she confirmed the man was inside armed with a knife.

Police began negotiating with the man through a window, however were forced to move away on occasions when he lifted the knife to his neck and threatened to stab himself.

He eventually surrendered without incident, however was immediately taken to Wollongong Hospital under police guard with a suspected collapsed lung.

Police seized a number of items from the premises including the knife and the police shirt.

Facing court on Friday, the man pleaded guilty to the offensive weapon and stolen goods charges.

He remains in custody ahead of his sentencing in December.