He has been charged with using an offensive weapon to prevent lawful detention, assaulting police and malicious damage, as well as domestic violence-related offences.

He was refused bail and will appear in Wollongong Local Court on Thursday.

4.15pm: Police have used a Taser gun to subdue a man, allegedly armed with knives, who was holed up in a Fairy Meadow home on Wednesday.

Heavily-armed officers swarmed the Princes Highway address around 9am, after reports of a domestic dispute between a 23-year-old man and his sister, Wollongong Police Inspector Don Faulds told media at the scene.

A witness told the Mercury she saw the man brandishing two knives – one in each hand – outside on the street when officers arrived.

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The alleged offender is said to have then made threats towards officers before barricading himself inside the residence and refusing police directions to surrender.

“[The sister] called police for some concerns, as a result police tried to engage him, he made some threats towards police and he’s refused to come out and its escalated from there,” Inspector Faulds said.

Nearby businesses and the Fairy Meadow Demonstration School went into lock-down as police negotiators spoke to the suspect.

The dog squad, riot squad and NSW Ambulance officers were also on scene.

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During the three-hour stand-off Inspector Faulds said negotiations were fairly “one sided” and the man allegedly continued to display “very aggressive” behaviour.

“He wasn't happy about police being there and made it quite clear he didn't want us there,” he said.

An exclusion zone for vehicles and pedestrians was set up around the property, meaning traffic was blocked from entering the highway between Balgownie Road and Daisy Street.

The siege ended around 12.20pm when the man was was tasered and subsequently arrested. He was taken to Wollongong Hospital by ambulance under police guard.