A man has been arrested following the discovery of a body inside a home in Sydney's west.


Police closed north-bound lanes of Stacey Street in Bankstown following the discovery of the man's body inside the home just after 6am on Thursday.


Police could not immediately confirm radio reports that the man's body had been mutilated.


A NSW Police spokeswoman said police were called to the home to reports of a domestic violence incident about 6am.


When they arrived they found a body, believed to be that of an elderly man. A second man was arrested by police at the home.


Police have set up a crime scene at the home, and homicide squad detectives have been called in to assist detectives from Bankstown Local Area Command.


A police helicopter is circling the area, and a number of police officers are in the street.


The Transport Management Centre said all north-bound lanes of Stacey Street were closed at the intersection of Macauley Avenue. One north-bound lane was re-opened just after 8am.


Traffic on Stacey Street and Fairford Road is heavy and the Transport Management Centre said motorists should consider using Canterbury Road and King Georges Road as an alternative route.


Anyone with information about the man's death has been urged to call Crime Stoppers on 1800 333 000.