The 26-year-old was walking along King Street, near the intersection of Gipps Street. about 5.30am, when a dark coloured car pulled up.

Police have been told two males wearing masks, hats, long sleeved shirts and trousers, and one waving a knife, robbed the woman of her bag containing a wallet and phone.

The pair then fled in the car, believed to have been driven by someone else.

The woman alerted police who canvassed the area, looking for witnesses.

Investigators are also probing any links to another aggravated break-and-enter in Hercules Street, West Tamworth, last Friday morning after a similar description was provided to police.

Anyone with information on the robbery is being urged to contact Tamworth police on 6768 2999 or Crime Stoppers on 1800 333 000.