Two people are in custody and a firearm has been seized following a police pursuit through Newcastle’s suburbs early this morning.

Police were responding to reports of an alleged break and enter when officers attempted to stop a vehicle on Park Avenue at Kotara about 6.35am on Thursday.

It is alleged the driver failed to stop when directed, with a pursuit initiated by officers attached to Newcastle City Police District.

The vehicle was followed along Charlestown Road, Hillsborough Road, Brunker Road and Russell Street before coming to a stop at the intersection of Northcott and Wade streets at Lambton about 6.50am.

A man and a woman were arrested at the scene and taken to Newcastle Police Station.

During a search of the vehicle, police allegedly located a handgun, which has been seized for forensic examination.

One police vehicle sustained damage during the incident. No officers were injured.

Police inquiries are continuing.