Damien Peters was last seen at the Prince of Wales Hospital in Randwick on Sunday.

A man convicted of a double murder is on the run after removing his electronic monitoring ankle tag while on parole in Sydney's east.

Damien Anthony Peters, 50, was last seen at Randwick's Prince of Wales Hospital about 4.15pm on Sunday after fellow residents at his halfway house called the ambulance due to concern for his welfare. Police found Peters' monitoring device just over four hours later in Roma Avenue in nearby Kensington, about two kilometres from the hospital.

"It would appear as though the ankle bracelet has been forcibly removed, possibly cut," Eastern Beaches Police Area Command Commander Detective Superintendent Rohan Cramsie said on Monday morning.

"We don't know at this stage what has been the catalyst to make him remove the bracelet."