Sydney - Australian police on Sunday arrested a fugitive wanted over the death of a 54-year-old who was found decapitated 10 days ago.

More than 100 police were involved in the six-day operation in Darwin's rural suburbs to find Jonathon Stenberg, 46, who had reportedly been hiding in bushland north of the Northern Territory capital.

“He was armed but surrendered to police without incident,” crime commander Richard Bryson said in a statement.

“He was sighted and captured in the primary search area where police had been concentrating resources,” he added.

Northern Territory police said Stenberg, who had been spotted on Tuesday, sparking the manhunt, had been arrested on a warrant for the June 21 murder of a 54-year-old male in northern New South Wales.

Reports said the victim was found with a hat in place of his head in his ramshackle home. The man's head is yet to be found. - Sapa-AFP