The 25-year-old man allegedly fled the scene on Carinya St in Blacktown on Friday after a 28-year-old man died from gunshot wounds to his neck, chest and leg.
The shooting occurred mid-morning, less than 500 metres from Blacktown police station.
Police allege the 25-year-old man and an 18-year-old man tried to escape in a ute, triggering a five-minute pursuit by police.
The vehicle crashed on Kildare Road less than a kilometre away.
Police allege the two men inside attempted to run but were arrested after a short pursuit.
The older man was treated for minor injuries in hospital under police guard.
He was discharged from hospital on Sunday and taken to Blacktown Police Station where he was charged with murder, using an offensive weapon to prevent lawful detention, being carried in conveyance taken without consent of owner, hindering or resisting a police officer in the execution of duty and breach of bail.
He was refused bail to appear before Blacktown Local Court on Monday.
The 18-year-old has been remanded in custody, charged with murder, taking and driving conveyance without consent of owner and police pursuit.