The Newcastle Herald reports that two sisters awoke to a nightmare when one of their former partners broke into their home as they slept and shot both of their boyfriends in the head.

A man has been charged with attempted murder for shooting two people as they slept at a house in Newcastle.

Police say a 31-year-old man broke into the house and fired a rifle at two men while a two-year-old girl and two women slept nearby.

Two men, one in a critical condition, are in the John Hunter Hospital after they suffered gunshot wounds to the head.

Police allege the shooter first fired a number of times at a 30-year-old man in a bedroom before targeting a 21-year-old man who was asleep in the lounge room of the Jesmond home.

Emergency services were called to the scene about 2.30am (AEST) on Sunday.

Although both suffered gunshot wounds to the head, the 21-year-old remains on life support.

Police from Newcastle searched the area after the shooting and arrested a 31-year-old man in Lambton.

He was found with a 0.22 calibre pump-action rifle and a folding knife.

The 31-year-old will appear in court on Monday after he was refused bail.

-AAP