Shooting veteran Michael Diamond says he thinks he will be "OK" despite a firearms charge putting his Olympic selection in doubt.

Key points: Michael Diamond charged with drink-driving, firearm offences

Michael Diamond charged with drink-driving, firearm offences Charges may not end selection hopes, AOC Chef de Mission says

Charges may not end selection hopes, AOC Chef de Mission says Diamond to appear in court next month

The 44-year-old dual Olympic gold medallist was arrested following an alleged domestic incident with his brother at Nelson Bay, near Newcastle on Saturday night.

Diamond refused to undergo a roadside breath test when he was stopped at Shoal Bay.

Police also searched his car where they allegedly found a shotgun and 150 rounds of ammunition.

Police said Diamond recorded a reading of 0.159 when he later underwent a breath analysis at Raymond Terrace Police Station.

He has been charged with high range drink-driving, not keeping a firearm safe and using a firearm while under the influence of alcohol.

Speaking with the ABC this morning, Diamond referred all questions to Shooting Australia.

He said he was not in a position to make comment on the charges but did say he would be "OK".

Diamond was bailed to appear in court next month, while his brother has also taken out a provisional apprehended violence order against him.

Charges may not necessarily rule out selection: AOC

Australian Olympic Commission Chef de Mission Kitty Chiller said the charges may not necessarily end Diamond's selection hopes as it is up to the discretion of Shooting Australia.

"Any of the athletes ... nominated by their national federation must be in good standing with that federation, and must not have brought themselves or their sport or the Olympic movement into disrepute," she said.

"[It's] totally in Shooting Australia's court.

"They need to make that decision before nominating their team to us."

Shooting Australia said in a statement it was working closely with Diamond to support him and to ensure his welfare was protected.

"We are also communicating regularly with the Australian Olympic Committee and our other stakeholders, and we will continue to do so," the statement said.

"Athlete nominations to the Australian Olympic Committee, and the appeal involving Michael Diamond, will proceed according to the relevant policies."

Target shooting community rallies around Diamond

Diamond had been in line to compete at his seventh Olympic Games this year in Rio, but an appeal by fellow athlete Mitchell Iles has delayed the final team selection.

The Australian shooter won an Olympic gold medal in 2000. ( Graham Crouch: Getty Images )

Senior clay target shooter Alex Smith said Diamond had passed his peak, but was still considered one of the world's best.

"I think it will be an absolute tragedy if he's not on the team," Smith said.

"Michael is a seasoned competitor, his experience at this level of competition is invaluable for any team, and it'll be a tragedy if he's not there.

"He's carried that through to Olympic glory twice; he's still got world records in his name; he's been a phenomenal competitor and has served Australia proud."

Diamond made his Olympic debut in Barcelona, where he finished 11th in the mixed trap event.

He won the Olympic men's trap in Atlanta in 1996, and successfully defended his title in Sydney four years later before finishing eighth, fourth and fourth in Athens, Beijing and London respectively.

His place at the Rio Games had already been under a cloud, with his selection being challenged by fellow Australian shooter Mitchell Iles.

Iles, 16, is arguing to the Court of Arbitration for Sport that he shot the national federation's benchmark score of 121 from 125 targets more times than Diamond and fellow shooter Adam Vella.

AAP/ABC