Acting on information, detectives and local police attended a Gunnedah home on Wednesday, where they arrested a local man wanted in relation to alleged sexual assaults dating back 25 years.

Police will allege the assaults occurred in the Central West area in the early 1990s.

An arrest warrant had been issued by a Dubbo court for the man after attempts by police failed to locate him earlier this year.

The man is accused of sexually and indecently assaulting a young girl. His name cannot be released for legal reasons.

The man, who was wanted on an arrest warrant, was charged with two counts of indecent assault of a person under 16 under authority.

He is also facing one count of aggravated sexual assault with a victim under the authority of the offender.

He was refused bail by Tamworth police and spent the night in custody before an out-of-sessions bail hearing in Tamworth Local Court on Thursday morning.

The man was granted conditional bail to reside in Gunnedah and report to police every day.

However, police prosecutors have lodged a stay of bail to halt that decision.

Under the bail act, prosecutors have 72 hours to lodge an application to be heard in the Supreme Court.

If the application is not submitted within that timeframe or is not pursued by the DPP, the original bail decision will be enforced and the accused released.

The case has been adjourned to Dubbo Local Court next week for mention and referred to the DPP because of the serious nature of the alleged assaults. 

The accused remains in the custody of Corrective Services.