A man suspected of breaking into a Newcastle property has died after allegedly being attacked by an occupant of the house.

Police said they found two men, a 33-year-old and a 32-year-old, detaining the man on a street in the Hamilton area after responding to reports of a fight early on Saturday.

Initial investigations suggested the 34-year-old had broken into the home of one of the men and attempted to steal from him.

The 33-year-old was arrested after allegedly attacking the man, aged 34, who later died.

Chief Inspector Trevor Shiels said he died in Newcastle's John Hunter Hospital about 11:30am.

"Today the 34-year old man passed away when life support was turned off and police investigations are continuing," Chief Inspector Trevor Shiels said on Sunday afternoon.

"A 33-year-old man was subsequently arrested and charged with recklessly occasioning grievous bodily harm."

The man was treated for facial injuries and was granted conditional bail.

He is due to appear in Newcastle Local Court next month.

Police could not say if the charges would be upgraded in the wake of the man's death.

The other man, who is thought to have helped detain the suspected thief, was not charged.