Police had been called to Paul Jon Rudd’s O’Shea Street house about 12.50am on February 2 amid serious concerns for his welfare.

His partner had called triple-0, warning Rudd was violent and unstable and officers could hear him yelling when they arrived.

They approached the home and Rudd came out of the front door, telling them to “f--- off” while holding a lighter in the shape of a firearm.

This caused police to draw their guns but Rudd’s partner grabbed the device and told them it was only a lighter.

He slammed the front door as he walked back inside and the officers called in backup.

More police arrived and began negotiations, asking Rudd to surrender.

But he continued to swear and told the officers he would “shoot youse” and “cut you up” if they tried to enter.

He re-emerged holding a can of grog and a kitchen knife with a 20 centimetre long blade and again threatened to stab police.

A perimeter was set up around the house and more officers were called in.

Rudd continued to threaten police over the next half hour before walking out with his hands in the air.

He was arrested and police found the knife on a kitchen table along with a machete and the lighter.

Rudd smashed his head and hands into the dock at Albury police station and was aggressive to paramedics when they tried to treat him.

Albury Local Court heard Rudd had a long history of drug, alcohol and mental health problems, but had refused psychiatric treatment many times.

He has run away from Nolan House.

Rudd had a suspended sentence in Victoria for ice trafficking, drink driving and dealing with property suspected of being the proceeds of crime at the time of the offence.

He had tried to have the matter dealt with as a mental health issue, rather than criminal matter, on Thursday.

But magistrate Tony Murray rejected that and warned he may go to jail. 

The matter will return to court on October 12.