Police say the 60-year-old cyclist killed in a hit-and-run incident on the New South Wales north coast was returning home after helping rescue four people from a capsized boat.

John Foss died in hospital from head injuries after his motorised bicycle was hit by a van on Coolamon Scenic Drive at Mullumbimby about 10:00am (AEDT) on Tuesday.

Mr Foss was a volunteer with Marine Rescue NSW and was on his way home after helping rescue four people at Brunswick Heads.

A man has been charged with murder and dangerous driving occasioning death. The van did not stop, but police arrested 53-year-old James Andrew Mitchell yesterday at a house at Nashua, near Clunes.

Police say Mitchell lead them on a two-kilometre chase through rugged bushland before being caught.

Inspector Greg Jago says information from the community led officers to Nashua.

"It is now apparent the collision involving the van and the bicycle at Mullumbimby wasn't an accident as was originally reported to police, and as a result a 53-year-old man has been charged with murder," he said.

Mitchell did not appear in the Lismore local court today. Bail was refused and the matter has been adjourned to the Lismore local court for the 17th of January.

The murder charge means the death has been removed from the New South Wales holiday period road toll, which now stands at 18.