A man from Young has been charged with the murder of Western Sydney man Jacob Munro, whose body was found in a bush grave near Bulahdelah last year.
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Homicide Squad detectives swooped on a house in Young on Monday morning and arrested a 25-year-old man.
A search warrant was executed at the property.
The man was taken to Young Police Station, charged with murder, and refused bail to appear at Cootamundra Local Court.
He is the third man charged over Mr Munro's murder.
Mr Munro, 24, was reported missing from Schofields after he was last spoken to by associates on Monday, July 21 2014.
The Homicide Squad established Strike Force Zion - together with North West Region detectives - to investigate the matter.
In December 2014, acting on information, police searched bushland in the Bulahdelah State Forest, locating Mr Munro’s body in a bush grave.
He had suffered significant injuries.
Last week, detectives arrested a 68-year-old Yetman man and a 21-year-old Lake Munmorah man, and they remain before the courts on charges relating to Mr Munro’s murder.
Investigations are continuing and Strike Force Zion detectives anticipate making further arrests.
Police are urging anyone with information about this incident to call Crime Stoppers on 1800 333 000.