An elderly man who allegedly chased another man through a shopping centre while brandishing a hunting knife has been charged with attempted murder.

Police said shoppers, including children, watched as the man, 77, chased his victim, 59, into a food court in Wollongong, south of Sydney, on Tuesday.

The man allegedly approached his victim, held the knife at his ear and threatened him at the Warrawong shopping centre about 1:45pm (AEDT).

Inspector Brian Pederson from the Lake Illawarra Command said the victim pushed the alleged attacker away and tried to flee.

"The 77-year old was still brandishing the knife as he chased the man and that knife was visible to the patrons and children that were in the food court at the time," Inspector Pederson said.

When security arrived, the alleged attacker fled and was later picked up by police, still in possession of the knife, he said.

He was refused bail and charged with being armed with intent to murder, affray and common assault.

Inspector Pederson said the attack was an isolated incident and shoppers should not be concerned.

"All the years I have been down here I can't recall another incident where we have had something of this nature in one of our shopping areas," he said.

"Of course it is a serious matter, however it's a very unusual matter," he said.

The man was refused bail in Port Kembla Local Court and will reappear next week.