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Sydney driver threatened with gun

A man has been arrested after a taxi driver was allegedly threatened with a firearm in Sydney's west.

Police were called to the Great Western Highway at Parramatta just before 3.30pm on Saturday following reports there was an armed man threatening a taxi driver after he was dropped off.

A 33-year-old man was found about 3.50pm on a nearby street and taken to Parramatta Police Station where he was assisting detectives with enquiries.

The man was wanted on an outstanding warrant, police said.

No firearm has been found and officers continue to search the area.

© AAP 2018