Man denied bail over Sydney New Year's Eve terror threats

A man has been denied bail after being arrested at Sydney Airport for allegedly making threats related to New Year's Eve.

Damian James O'Neil, 40, was arrested by NSW Police Terrorism Investigation Squad officers at Thursday on the basis of information from the public.

Police searched a storage facility in Chippendale, Sydney's inner west where they seized documents and hard drives.

Damian James O'Neil, 40, was arrested at Sydney Airport after arriving on a flight from London. Source: Supplied

Police have told Sydney New Year's Eve revellers not to worry about a potential terror threat. Source: AAP

O'Neil allegedly posted a blog threatening to kill or injure members of the public around Christmas.

He was charged over documents containing threats contrary to the Crimes Act concerning online blogs.

O'Neil did not apply for bail when he appeared in Parramatta Local Court today and it was formally refused.

He is due to appear in court again on January 10.

His father told 7 News O'Neil has mental health issues.

Officers said O'Neil had no links to terror groups and therefore his arrest should not change anyone's New Years plans.

Deputy Commissioner, Specialist Operations, Catherine Burn, said in a statement that police took all threats seriously and investigations so far indicated the matter was an isolated incident.

"As a consequence, we are confident that there are no current or specific threats to New Year's Eve and, while we ask people to remain vigilant, people should enjoy the celebrations," she said.

This came as police and the premier Mike Baird issued a reminder to revellers to remain vigilant - and keep an eye out for any suspicious behaviour given the attacks on crowds overseas in Germany and France.

"Obviously, people's safety is paramount and a huge effort is going into ensuring we are kept safe as we go about New Year's Eve," Mr Baird said.

NSW Police Assistant Commissioner Mick Fuller said there would be additional police out in force for New Year's.

"We will additional 2,000 police resources on top of what is normally rostered to ensure the night will go smoothly," Assistant Commissioner Fuller said.