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AAP
AAP
National
Luke Costin

Neighbour charged with Sydney man's murder

A neighbour has been arrested over the murder of retired Sydney man Peter McCarthy. (AAP)

A female neighbour of an elderly Sydney man killed in a violent assault and robbery has been charged with his murder.

Peter McCarthy, 77, was found dead in his South Coogee home on December 20 with severe head and facial injuries.

Homicide detectives returned to Elphinstone Road on Monday to arrest the woman, aged 46, in another unit.

Charged with murder and a fraud offence, she was refused bail ahead of an appearance at Waverley Local Court on Tuesday.

Mr McCarthy's last confirmed sighting was at The York Club in the Sydney CBD on December 16 while he may have been seen at home the next day.

Police wouldn't say when they believe he was fatally assaulted.

The woman arrested on Monday was not the one depicted in CCTV images released by detectives in December, Detective Superintendent Danny Doherty said.

That woman and the man filmed walking next to her are yet to speak with police, he said.

Mr McCarthy's family remain in contact with detectives and were informed of the woman's arrest.

"I think it's mixed emotions for them," Det Supt Doherty said.

"They've just gone through Christmas without a father and a grandfather.

"They're still getting over the grief of losing Peter."

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