A man who threatened to set fire to an apartment block in Yagoona, in Sydney's south-west, has been arrested.

The man, described by witnesses as being of Asian appearance and in his late 60s, barricaded himself in a granny flat in the Hume Highway complex and doused himself in petrol, apparently intending to set himself alight.

A man is taken into custody during a police operation at an apartment complex in Yagoona. Credit:Daniel Munoz

He was detained after police knocked down a rolling garage door to gain entry to the building.

A witness, Gary Dring, said: "They bashed in the roller door and he was straight in the paddy wagon."