Ronald William Tighe has been behind bars since his arrest in June and did not appear on the screen in Tamworth Local Court when his case was called recently.

Aboriginal Legal Service defence solicitor Joseph Healy told the court the Commonwealth prosecution agency, the CDPP, had decided not to take on the matter and it would stay in the local court.

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He said Tighe would fight the two allegations levelled against him, of utter counterfeit money knowing it to be counterfeit; and possess counterfeit money.

"Entering pleas of not guilty," Mr Healy told the court.

Police prosecutor Sergeant Matt Pawsey confirmed a compliant brief of evidence in the case had already been compiled by officers and would be served on the defence.

The matter was adjourned to later this month, and Tighe has been ordered to appear via video link from custody.

Police allege Tighe was found with $850 worth of fake $50 notes when he was arrested near a South Tamworth supermarket in early June.

The court previously heard the accused was on a shopping trip to buy alcohol and cigarettes with another person, when police claim a $50 note that was handed over had foreign writing on it.

Police were alerted and Tighe was arrested and charged shortly after.

He made no application for bail in court last week and it was formally refused.

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