An armed man who kidnapped another man at gunpoint in Daly Waters and forced him to drive three hours to Katherine after discharging a gun in the vehicle has been arrested, NT Police said.

Police called it a “firearm and abduction incident” that started in Daly Waters around 9pm, when the man “armed with firearms” entered an accomodation block on the Stuart Highway and began threatening patrons.

He then found a male patron and forced him at gunpoint to drive the 276km trip to Katherine.

“While in the vehicle, the offender has allegedly fired one of the weapons in the vehicle,” police media director Mark Wilton said.

“No injuries were reported. Multiple members of the public called police to provide information.”

Katherine Police later located the 36-year-old man in Katherine after midnight after he fled the vehicle with two firearms.

“He was arrested without incident and currently remains in custody, expected to be charged later this evening,” Mr Wilton said.

Police did not provide an update on the status of the driver who was taken at gunpoint.

“Detectives from Regional Crime are calling for anyone who may have witnessed the incident in Daly Waters, witnessed the male in Katherine or has CCTV/dash camera footage, to come forward and call 131 444 and quote reference number NTP2400117742,” Mr Wilton said.

“Anonymous reports can also be made through Crime Stoppers on 1800 333 000 or through https://crimestoppers.com.au/.”