The daughter of former New South Wales premier Neville Wran is being questioned by police in relation to the alleged murder of a man in Sydney.

Harriet Wran is one of two people being questioned over the death of 48-year-old Daniel McNulty on Sunday night.

McNulty died after being repeatedly stabbed at a public housing complex in Redfern.

Another man, aged 42, sustained multiple stab wounds in the attack.

Lloyd Haines, 29, has been charged with murder, attempted murder, and aggravated break and enter.

He appeared in Parramatta Local Court on Wednesday and was remanded in custody.

Ms Wran, 26, the late former premier's youngest daughter, was arrested in Liverpool with a 35-year-old man and taken to Cabramatta police station.

The pair was still being questioned late on Wednesday night and police would not say if or when they expected to lay charges.

Police said the arrests were made after a red hatchback was found in the Sydney suburb of Waterloo.

Mr Wran, who led NSW from May 1976 to July 1986, died in April.