Police attempted to pull over the Genesis SUV on the Hume Highway at Menangle, south-west of the city, at 10.40am but the vehicle allegedly took off.

Ten minutes later the car was found on Downes Crescent in the nearby Sydney suburb of Currans Hill but the three teenagers had walked off into the neighbourhood.

Local resident Justin Miller was in the garden when the trio approached him and asked for directions to the nearest train station.

Miller assumed the teenagers had been at a local house party the night before and sent them to the closest bus stop.

“Five minutes later the chopper came flying over and the cop cars were flying down the street, I put two and two together at that stage,” he said.

Multiple police resources were used in the search, including PolAir, the dog squad and the tactical response squad.

Local resident Lee Jeans described the scene as “a bit chaotic” for the usually quiet area.

“There were cops everywhere, they had them on the ground, everyone was crowding around,” she said. 

“A bit of excitement for the neighbourhood.”

Officers found a large knife in bushland close to where the three were arrested.

The alleged offenders were taken from Goode Street in Currans Hill to Narellan Police Station, where they were interviewed by detectives this afternoon.

Police claim the car involved in the highway pursuit had been recently stolen from Canberra.

Officers are now investigating whether the group is linked to any crimes in the Australian Capital Territory.