New details of the incident have been released by police after they arrested and charged 22-year-old man Dalton Trent Oliver from Stockton on Wednesday.

According to Homicide Squad Commander detective superintendent Danny Doherty, this arrest is just the start with police on the hunt for an accomplice.

On Monday July 26 last year emergency services were called to Fullerton Street at Stockton, following reports of a unit fire. On arrival, officers from Fire and Rescue NSW found the premises well alight. While they managed to extinguish the blaze, a search of the unit revealed the body of a man.

He was identified as the unit's resident and sole occupant, Graham Cameron. While the cause of the fire was initially the focus of the investigation, the post mortem of Mr Cameron's body confirmed to police that he had been murdered prior to the blaze and a homicide investigation was launched.

"While it initially was thought that Mr Cameron had died as a result of fire we can now disclose, and allege in the facts, that Mr Cameron was actually stabbed," detective superintendent Danny Doherty said at a press conference outside Newcastle police station on Wednesday.

"The fire was deliberately lit to disguise or cover the circumstances of the murder and also to destroy, or attempt to destroy any evidence."

Detectives executed a search warrant at a home on Pitt Street at Stockton about 6.30am where they arrested Oliver who was a "known casual acquaintance" of Mr Cameron.

He was charged with murder and was bail refused to appear at Raymond Terrace local court on Wednesday.

He did not appear in person in court, instead remaining with Corrective Services officers at Raymond Terrace police station.

Oliver was represented by Gaston Gration from the Aboriginal Legal Service who requested for him "to be assessed for his mental health when he reaches jail".

No release application was made and he is due to return to court on November 28.

"After a very protracted and complex investigation - with many witnesses and lots of lines of inquiry have been made, and with assistance from the public and the community of Newcastle - today a 22-year-old man was arrested," he said.

It is understood police will allege in court that Oliver both fatally stabbed Mr Cameron and also lit the fire.

While the arrest is a significant breakthrough, police still believe one or more people were involved in the murder and several people could potentially be hiding information from police.

"It's not over, we won't rest until other people that are involved in this incident are identified and put before the courts," he warned.

"Police believe that, and will allege in court that, there's other people involved in this murder.

"It's horrific, a 54-year-old man in his own home has been stabbed to death and as a result of that there has been a fire in a unit complex, which was not only there to destroy or cover over that murder, but also may have put other people in danger."

Anyone with information is encouraged to contact Newcastle detectives or Crime Stoppers on 1800 333 000 or https://nsw.crimestoppers.com.au. Information will be treated in strict confidence.

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