Alleged NSW murderer caught in Queensland

A man has been arrested in Queensland and charged with murder over a fatal stabbing in Sydney's west.

Shane Naylor, 45, died after being stabbed in the head and abdomen in Toongabbie on the evening of January 7, 2022.

A man who was injured during the incident was arrested and taken to hospital under police guard. He was later spoken to by police but not charged.

More than a year later, the same man, who is now 57, was arrested in Queensland on Monday with the help of local police.

A Brisbane court granted his extradition to NSW, enabling homicide detectives to escort him to Tweed Heads Police Station on Tuesday where he was charged with murder and refused bail.

Detective Acting Inspector Adam Wilson from NSW Police said it was alleged the stabbing resulted from a dispute over money and jewellery between the two men.

"There was an argument over some jewellery that the accused believed Shane had stolen from him," he told reporters on Tuesday.

He thanked members of the public who assisted police and urged anyone else with information to come forward.

"We do believe that there are other potential witnesses from the Toongabbie area that may have been reluctant to come forward on the basis of safety concerns," Det Act Insp Wilson said.

"We can reassure them now ... should they decide to come forward any information they provide us will be treated in the strictest confidence."