Police are investigating following an armed robbery at a bakery near Newcastle yesterday.

About 4.40pm (Friday 24 July 2015), a 60-year-old woman was working in a bakery on Ridge Street, Merewether (about 4km south west of Newcastle) when a man armed with a knife entered the store.

Police have been told the armed man threatened the woman, before running from the scene in a westerly direction, taking cash.

A 30-year-old male witness attempted to stop the man; however lost sight of him a short time later.

The woman was uninjured during the incident.

Officers attached to Newcastle Local Area Command were notified and commenced investigating the incident.

As inquiries continue, police would like to speak to a man who may be able to assist them.

He is described as being of Caucasian appearance, aged in his 30s, about 188cm tall, of slim build, and was wearing a white striped hooded jumper.