A man has been charged, after a car was allegedly stolen during a break and enter near Newcastle.

Police were called to a business at Chatham Road, Hamilton North about 7am yesterday, following reports a robbery was in progress.

Officers were told a 2021 BMW X1 was stolen from the location and two men fled in the vehicle, and a woman ran away on foot.

The business was extensively damaged and several sets of keys were allegedly stolen.

A witness contacted police, and officers began an investigation.

The stolen car was spotted at various locations in the area and a pursuit was initiated through Lake Macquarie and Newcastle.

The vehicle was later located unattended in Fraser Street, Jesmond, and seized.

A 40-year-old man was arrested on Blue Gum Road about 11am and taken to Waratah Police Station.

The man was charged with drive conveyance taken without consent of owner, break and enter house, enter enclosed land, stalk/intimidate intend fear physical harm and drive motor vehicle during disqualification.

He was refused bail to appear before Newcastle Local Court today.

Investigations continue, in a bid to locate another man and woman.

Police are urging anyone who witnessed the incident or has information, to contact Newcastle Police or Crime Stoppers on 1800 333 000.