Police will allege in court that the 61-year-old male driver grabbed the 26-year-old woman's hand and made inappropriate comments towards her during the late-night taxi ride on Sunday.

The woman, Emma, claimed that the driver grabbed her arm, attempted to kiss her and said: "You're like honey – I'm trying to taste the honey."

Emma, who did not want her surname used, told Fairfax Media she was returning from an interstate trip, and had caught the train from Sydney Airport to Central Railway Station about 11pm on Sunday. She then hailed a taxi at Central, and asked the driver to take her to her home in Glebe.

However, police said the taxi driver allegedly made inappropriate advances towards her during the ride.

Emma claimed the driver kept saying: 'You're very sweet. I love you. The girls are very sweet. Like honey. The men like the girls."

Emma said that, as they neared her home, the driver reached over, grabbed her arm and attempted to kiss her, to which she responded: "No."

She was so concerned by the driver's behaviour that she told the driver to stop and exited the taxi, police said.

Emma reported the incident to police the following morning.

About 11.15pm on Tuesday, detectives from the Leichhardt Local Area Command stopped a taxi on Bondi Road in Bondi and arrested a 61-year-old man.

He was taken to Newtown police station and charged with indecent assault and common assault.

He was released on strict conditional bail and is due to appear at Downing Centre Local Court on December 18.