Police from Coffs/Clarence Local Area Command have arrested a man following a high-risk police operation in South Grafton overnight.

Police had been seeking to speak with a 40-year-old man in relation to an aggravated break and enter at Cams Wharf on 18 December, during which a shotgun was allegedly produced.

Acting on information received, police went to a caravan park in South Grafton on 26 December but were unable to arrest the man.

Information was received yesterday that the man was in a home in Bennetts Road, South Grafton.

Specialist police from the Tactical Operations Unit were brought from Sydney to assist in the high-risk operation, which began at 7pm.

At 5am a perimeter was established surrounding the home.

Shortly after 6am a man left the building and was chased by police on motorbikes through a number of paddocks before being arrested. More than $2500 in cash was found on the man when searched.

The man is now in police custody at Grafton Police Station.

Police will allege the man is also wanted on four outstanding warrants.