Two Sydney teenagers alleged to have "clear links" to terror suspects have appeared in court on drug and weapon supply charges.
Bilal Alameddine and Saminjan Azari, both 18, were arrested in a joint counter-terrorism operation involving NSW and federal police, at Auburn on Friday evening.
The two had been monitored by authorities since last September, however in the past two months came under increased surveillance.
They allegedly sold seven firearms to undercover officers, along with 11 ounces of cocaine and each face 17 drug and weapon-related charges.
Both men appeared briefly in Parramatta Bail Court via video link from Amber Laurel Correctional Centre on Saturday, where they waved and blew kisses to family members and supporters in the public gallery.
Neither applied for bail and it was formally refused by Magistrate Robert Abood, who adjourned their matters to next Thursday at Parramatta Local Court.
Court documents reveal allegations the men supplied more than 150 rounds of ammunition - including .22 calibre and 7mm cartridges - in May and June this year.
Following the arrests, police raided three properties in Merrylands and Toongabbie and also found another gun, cash, illicit drugs and an imitation police vest.
Deputy NSW Police Commissioner Dave Hudson said on Saturday morning the teenagers were "on the periphery" of the large number of terror suspects being monitored by authorities.
"Clear links between these suspects, the criminal element and the terrorist element are evident," he told reporters in Sydney.
"We took that opportunity to try and remove (the guns) from the streets before they could fall into hands either in the terrorism environment or the criminal environment where they could do damage to the community."
Footage of the arrests released by police shows the two men lying face down, handcuffed, on the concrete in a car park.
Mr Hudson said a "very long period in jail" awaited the pair if they were convicted.
The raided properties had come to the attention of police in the past, he added.
The strike force will continue operating to tidy up new leads that came from the arrests.
Mr Hudson moved to reassure the community there was no current or impending threat to the community.
"I can indicate that the threat level in NSW and Australia remains at probable," he said.
"I would urge anyone who has any information into alleged or suspected terrorist activity or those on the periphery of terrorist activity, to contact the national security hotline."