(CNN) Two Australian teenagers have been charged with planning an act of terror and for being members of a terrorist organization, police said in a statement Thursday.

Police say the two 16-year-old suspects, who are not being named due to their age, were arrested in a suburb of Sydney on Wednesday. Two knives were seized during the operation.

A Federal Police spokesperson later confirmed to CNN that they have been linked to ISIS.

The pair were refused bail on Thursday and are due to appear before Parramatta Children's Court in Sydney later the same day.

"The fact we are putting two teenagers before the court on such serious charges reflects the ongoing threat we face. Fortunately, the excellent cooperation between State and Federal agencies has prevented a very disturbing crime," said Catherine Burn, the acting New South Wales Police Commissioner.