Gary Clark, 27, has been charged with the stabbing murder of 42-year-old Stephen Morris last month.
About 7.15am on Tuesday, Strike Force Favalo detectives descended on an address at Hamilton South with the help of Northern Region Operations Support Group officers, the Dog Unit and Police Rescue.
Clark was arrested and taken to Newcastle Police Station, where he was charged with murder.
He was refused bail and faced bail court on Wednesday where he did not make an application for release.
He will next appear on September 30.
Emergency services had rushed to Hassall Street about 3.30pm on Saturday, July 11 after reports someone had been stabbed.
When Newcastle City Police District officers arrived, they found Mr Morris had suffered a stab wound.
NSW Ambulance paramedics treated Mr Morris at the scene.
He was taken to John Hunter Hospital and died a short time later.
Strike Force Favalo was established to investigate his death, with the help of the State Crime Command's Homicide Squad.
Mr Morris' brother Brian spoke exclusively with the Newcastle Herald the day after his death in the hope he would be remembered for the person he was, instead of where he lived or how he died.
"He was a brother, he was a son, he was a father, he was a pop, he was a person," Brian said.
"He was a person with a heart of gold. He would do anything for anyone.
"He was everything to me."
Brian rushed to Hamilton South after he received a call to say his brother had been stabbed.
When he arrived, he found paramedics working on Mr Morris and was reassured they were doing everything they could to save him.
Family members went to John Hunter Hospital when Mr Morris was taken in an ambulance, but were sadly told he could not be saved and had died from his injuries.
