Furner had fled Port Macquarie hospital while under police guard about 8am on Sunday.

Police spotted him in a vehicle about 7.15pm and initiated a pursuit, which ended when the car struck a roundabout on the Pacific Highway at Frederickton.

The 23-year-old fled the scene, leading to an extensive search of the area, located about 60 kilometres from the hospital he fled.

He was seen trying to access a property.

A police dog tracked him down to a paddock and Furner was bitten on his face.

He was arrested and was assessed for the dog bites.

Furner will front court in Kempsey today.

EARLIER: A large scale manhunt is underway after a former Albury man escaped a hospital while under guard, with a custody officer firing a warning shot during the escape bid.

Matthew Furner, 28, was in custody at the Mid North Coast Jail.

He was being treated at Port Macquarie Base Hospital under close watch from Corrective Services NSW staff.

He pushed two corrections staff over and fled about 8am on Sunday, leading to a large search operation involving the police air wing, dog squad and highway patrol.

IN OTHER NEWS:

Furner was last seen running west from the Oxley Highway near Lake Road.

The 28-year-old still has ties to Albury-Wodonga area, and many of his family members are also involved in crime.

His older brothers Danial and Nathan are well known to police, while his mother, Karen, also has a criminal record.

The escapee had been due to face court in Wyong next Friday for a hearing.

Police released an image of Furner on Sunday, showing him with a large tattoo on his neck.

He was wearing prison greens, and has a shaved head with a rat tail.

The 28-year-old has priors for various offences on the Border, including break-ins, thefts, and other matters.

It's unclear where Furner has been living when outside jail, but photographs posted on his Facebook page last year show him at The Northside Hotel in Lavington with family members.

It's believed he was in custody for police pursuit, apprehended violence order contravention and dishonestly obtaining goods.

Police urge anyone who sees Furner to call triple zero and avoid approaching him.