A man with a group of protesters en route to an anti-Islam rally in Melbourne was found with a pistol in his bag.
Victoria Police chief commissioner Graham Ashton said his NSW counterparts seized the firearm from protesters who were travelling to Melbourne from Sydney to attend last weekend's Reclaim Australia rally.
"A few groups came down from Sydney. NSW police searched the bus of one of those groups, found a firearm, found a knife," he told 3AW radio on Thursday.
A NSW Police spokesman confirmed officers found a pistol in a 39-year-old man's bag outside Central Station in Sydney on Friday night.
"Officers searched the man and located a pistol in a secure container within the man's baggage," the spokesman said.
"There was no ammunition in his possession."
The man had a gun licence but the pistol was seized.
He was released without charge.
"Police investigations are continuing in relation to charges being laid," the spokesman said.
Violent scenes erupted in Melbourne on Saturday after protesters from the Reclaim Australia camp clashed with anti-racism supporters.
Hundreds of police blocked streets in front of Victoria's Parliament House, separating the opposing groups.
At least four people were arrested, placards set alight and police were forced to use capsicum spray.
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