A double murderer who jumped his parole has been arrested following a manhunt around Sydney.

Damien Anthony Peters, 50, was on the run after apparently cutting off his own ankle bracelet after visiting a Sydney hospital on the weekend.

NSW Police said the man was arrested in the Inner West suburb of Petersham.

He was transported from his parole accommodation to Prince of Wales Hospital in Sydney's east on Sunday after other residents became concerned for his welfare.

After being treated at the hospital he was then free to leave but at some point his ankle monitor was removed, NSW Police said.

"It would appear as though the ankle monitoring bracelet has been forcibly removed, possibly cut," Detective Superintendent Rohan Cramsie told reporters on Monday.

Det Supt Cramsie said the bracelet was made of "robust" material and a knife may have been used to cut it off.

The monitoring device was found in nearby Kensington and Peters' associates have been interviewed by detectives.

Peters pleaded guilty to murdering and dismembering two of his lovers in his Surry Hills flat in 2001 and was jailed for 21 years, with a non-parole period of 13 years, in 2002.

He was first eligible for parole in September 2014 but was not released until November 2016, a State Parole Authority spokeswoman told AAP in a statement.

His sentence would have expired in 2022.

It's unclear why the killer, after serving a considerable amount of his parole, decided to cut and run on Sunday.

"It was only a couple of years until he was due to finalise that sentence," Det Supt Cramsie said.



When he faced court for the murders it emerged Peters, then 32, had stabbed Tereaupii Akai, 50, twice in the neck before dismembering his body and throwing it in a council bin.

About eight months later, Peters stabbed 57-year-old Bevan James Frost to death while giving him a massage in bed before cutting up his body.

Detectives investigating Mr Akai's disappearance found Mr Frost's remains in the bath when they went to Peters' flat.

The parole authority, considering his release, looked at his completion of programs and counselling, day release programs, behaviour in prison and minimum security classification.

He was released under strict conditions that dictated his movements and was ordered to undergo more counselling.

"There was also a need for the offender to have a period of parole supervision prior to the expiry of his sentence in 2022 to facilitate contact with appropriate community support services," the parole authority spokeswoman said.

Peters is described as Caucasian and 175 to 185-centimetres tall, with a muscular build and short brown hair.

He has a tattoo of a snake wrapped around a panther on his upper right arm and tribal-style tattoos on his upper left arm.

Police believe he has not left Sydney and are urging members of the public not to approach him.