Police have arrested a man in Lithgow after he was allegedly in possession of counterfeit notes today.

About 9.30pm (Thursday 15 January 2015), police from Chifley Traffic and Highway Patrol attended a service station on Lithgow Street, Lithgow, to fill the car.

On speaking to staff the officers were handed counterfeit notes that had been used in a previous transaction.

Police commenced an investigation and attended other local businesses, including a fast food restaurant in Lithgow, where a number of counterfeit $50 notes were seized.

Early this morning (Friday 16 January 2015), following inquiries, officers attended a hotel on Main Street, Lithgow, and spoke to a 21-year-old Blue Haven man.

The man allegedly handed over a number of counterfeit notes.

He was arrested and taken to Lithgow Police Station where he assisted with inquiries.

The man was released as investigations continue.

Police appeal for anyone that believes they may have received counterfeit notes, especially in the Lithgow and Blue Mountains area, to report the incidents to Crime Stoppers or local police.