The 19-year-old man cannot be named for legal reasons and was excused from appearing when his case was called in Tamworth Children's Court on Tuesday.

Court documents reveal the teenager pleaded not guilty to the allegation of intentionally causing fire and being reckless as to its spread; but pleaded guilty to the charge of larceny.

Legal Aid defence solicitor Wendy McAuliffe represented the accused during the closed court session when the pleas were entered.

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Police allege the 19-year-old accused deliberately lit a fire in the Hanging Rock area in late October 2019, and was then reckless as the flames spread onto the public lands of the Nundle State Forest, ravaging its vegetation.

Court documents show the teenager admitted to stealing 200 litres of diesel - about $266 worth - from a Hanging Rock property sometime between midday on October 26, and 6am on October 27, 2019.

The teenager has been on bail since his arrest, and magistrate Julie Soars continued the conditions.

Police launched an investigation into the suspicious fire and homed in on the accused on May 25 this year, more than a year-and-a-half after the blaze broke out.

The breakthrough came after the release of CCTV images and a public appeal for information.

Police have previously said the fire destroyed a large amount of pine plantation when it ripped through the Nundle State Forest, with a damage bill of up to $3 million estimated.

The case was adjourned to September.

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