The drummer of Australian rock band AC/DC, Phil Rudd, has been bailed after being charged with trying to procure the murder of two people in New Zealand.

The 60-year-old was also charged with threatening to kill and possession of methamphetamine and cannabis.

Rudd was arrested at his Tauranga home on Thursday morning and appeared in Tauranga District Court later that day.

He did not speak in court and looked dishevelled, with his lawyer explaining this was due to him having been in police custody since early in the morning.

In court, a judge ordered that the names of his alleged victims and that of the alleged hitman be suppressed.

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Under New Zealand law, attempting "to procure any person to murder any other person" is punishable by up to 10 years in jail.

He has been bailed to his home until his next court appearance on November 27.

During this time he will be banned from a number of streets in Tauranga, as well as banned from having any contact with the person with whom he allegedly tried to get to organise the murders.

Australian-born Rudd has lived in New Zealand since the 1980s and owns restaurant Phil's Place in Tauranga.

Phil Rudd (back) with his AC/DC band members. ( acdc.com )

He joined the legendary hard rockers in 1975 and left in 1983, only to link up with them again in 1994.

The high-voltage band, one of the highest grossing music acts of all time, has had numerous hits that are still staples on classic rock radio worldwide, including Back in Black, Highway to Hell, Dirty Deeds Done Dirt Cheap and It's a Long Way to the Top (If You Wanna Rock 'n Roll).

In September the group revealed that founding member Malcolm Young had dementia and was being treated in a Sydney care facility.

News of Young's illness and retirement sparked rumours that the band could fold, but Rudd was quoted earlier this year as saying it would continue.

"It'll never happen. Angus (Young) will never retire and as long as Angus never retires, I won't retire either," he said.

Rudd released his first solo album in August, and the band has since announced a new album, Rock or Bust.

The band will release the album, which is the first in five years, early next month.