12/10/2016 5:22 PM AEDT | Updated 12/10/2016 5:24 PM AEDT

Counter Terrorism Police Arrest Two Sydney Teens

They were picked up in a Bankstown lane way.

Fairfax Media
Police at the crime scene where two men where arrested at Adnum Lane, Bankstown on October 12, 2016

Counter Terrorism police have arrested two teenagers in Sydney's south-west in what is understood to be part of an ongoing counter-terror investigation.

The NSW Joint Counter-Terrorism Team arrested the two 17-year-olds in a Bankstown laneway on Wednesday afternoon. Officers also seized two knives.

The pair remain in custody.

"Police are unable to release anything further at this time however there is no on-going threat in relation to this matter," NSW police said in a statement.

The ABC reports one of the men was questioned in 2014 by federal and state police after he refused to stand for the national anthem at the morning assembly of his school.