The 68-year-old, who cannot be named, remains behind bars ahead of an appearance in a Sydney court later this week.

He is charged with one count of being an accessory after the fact to murder following his arrest by specialist detectives in Yetman last week.

It follows the investigation into the death of 24-year-old Jacob Munro whose body was found in a bush grave near Bulahdelah last year.

Mr Munro, 24, was reported missing from Schofields after he was last spoken to by associates on July 21 before his disappearance was deemed to be suspicious.

Police from the Homicide Squad established Strike Force Zion, together with North West Region detectives, to investigate the matter and acting on information scoured bushland in the Bulahdelah State Forest in December, 2014.

Officers discovered Mr Munro's body in a bush grave and confirmed he had suffered significant injuries.

Following an investigation, the 68-year-old local was arrested by officers attached to Strike Force Zion who raided the Yetman property.

He was refused bail by police on Wednesday, February 25 and subsequently remanded in custody in a bail hearing in Inverell Local Court late on Wednesday afternoon.

The man fronted a bail hearing on Thursday morning in the same court where he was again refused bail by Magistrate Michael O'Brien.

Much of the case surrounding the 68-year-old has been suppressed by the court for legal reasons.

On Monday, detectives from Strike Force Zion arrested and charged a 25-year-old man in Young.

It is the third arrest in the investigation with a 21-year-old Lake Munmorah man also refused bail on charges relating to the murder.