The idyllic fishing village of Iluka has been rocked by the stabbing murder of one of its own after a 41-year-old man allegedly attacked a 58-year-old Iluka resident before leading police on a more than 50km long pursuit.

Social media ignited on the afternoon of Saturday, December 7, with posts from locals and visitors curious about a massive police presence and the Westpac Rescue Helicopter landing in the town.

Resident Tony Belton, who was at the Iluka Rural Fire Service Christmas Party at the time, told ABC North Coast six police cars, NSW Ambulance paramedics, emergency services and the rescue helicopter shook the silence of the town.

It has been reported a neighbour was hosting a children’s party when the tragic incident occurred.

On Saturday afternoon before 4.30pm, it has been reported that the 41-year-old allegedly entered the home of his 58-year-old victim and stabbed him, then fled the scene, after which the popular Iluka resident ran to his neighbour’s home for help and police were called.

The neighbour who the victim ran to for assistance, reportedly told Nine News he died in her arms.

She described the man as a “wonderful, hard-working man, who would give someone the shirt off his back”.

NSW Ambulance paramedics quickly arrived at the scene and treated the man, but he could not be revived.

Ballanda Crescent was cordoned off by police on Saturday night as officers checked on the welfare of neighbouring residents.

After police were called and were provided details of the 4WD the accused was travelling in, he was spotted on the Pacific Motorway north of Iluka by officers who tried to stop him.

Police said when the driver allegedly ignored police directions, a pursuit was initiated.

The driver allegedly led police on a pursuit on the Motorway and local roads near Coraki and Lismore for more than 50 km, then back to Woodburn where road spikes were successfully deployed by officers attached to Coffs Traffic and Highway Patrol Command.

“The 4WD continued to Uralba Street, Woodburn, where a 41-year-old man was arrested,” police said in a statement.

“He was taken to Lismore Hospital for assessment, before being taken to Lismore Police Station and charged with murder, predatory driving and police pursuit-not stop-drive dangerously.”

He was refused bail and appeared in Paramatta Local Court on Sunday, December 8 via audio visual link for a bail hearing from the Lismore cells after being held there overnight.

Police said in the pursuit that lasted almost 2 hours, the man allegedly ignored directions, his manner of driving had the intent of causing injury to another driver at Coraki, and he was also accused of driving recklessly and in a manner dangerous to others at South Gundurimba.

The accused will spend Christmas in jail after being refused bail, with his next appearance listed before Grafton Local Court in early February.

Police say enquiries are ongoing as to the motive.