A man was arrested in Dubbo after he was allegedly armed with a firearm and refused to exit a business.

Emergency services were called to a business in Victoria Street in Dubbo about 6.45am last Thursday, after receiving reports for a concern for welfare.

Officers attached to the Orana Mid-Western Police District attempted to speak with a 20-year-old man who was allegedly armed with what appeared to be a firearm.

After almost three hours that saw a coordinated response from specialist officers and roads in the area closed off, the man exited the business about 9.30am and was arrested without further incident.

He was uninjured and taken to hospital for assessment.

Following the arrest, police conducted a search of the building, locating and seizing an imitation firearm.

Following the man's release from hospital on Monday, he was taken to Orange Police Station where he was charged with possess unauthorised pistol.

He was granted conditional bail to face Dubbo Local Court on 15 April.