Twenty-nine-year-old Stephen Morris of Muswellbrook has been arrested and charged with firing a firearm in or near a public place and two counts of assault.

At 12.15pm on Monday, Morris was arrested at a house in Sandy Hollow.

He was charged and appeared in Muswellbrook Local Court on Tuesday where he was refused bail.

Police allege Morris was involved in the drive-by shooting that occurred at the intersection of Wollombi Road and Allyn Way about 2pm on Sunday, June 14.

The case was adjourned and the offender will appear before Muswellbrook Local Court on July 20.

Police are continuing to search for the firearm, car and at least one other man believed to be in the utility at the time of the incident.

Anyone with any information that may assist investigators should contact Crimestoppers on 1800 333 000.