Police have arrested two people in connection with the shooting death of Qusay al Mhanawi, killed when struck by a stray bullet on Friday night.
It’s understood the gunman was targeting other men when Mr al Mhanawi was killed.
Dozens of heavily armed officers stormed a property on Falcon Circuit at Heckenberg in the city’s south-west overnight.
A senior police source told the ABC that a man and woman were taken into custody over the shooting of 46-year-old al Mhanawi.
The car of a man wanted in connection with the shooting, Matthew Russell, was seized from the property, but he is understood to still be on the run.
The arrested pair were expected to be charged with concealing a serious indictable offence.
Mr al Mhanawi was sitting in his car outside his house just after 6:30pm on Friday when he was struck by a stray bullet and killed.
Police said two brothers had been confronted by a gunman after an altercation on Matthews Avenue in Heckenberg, Sydney.
Police told the media they believed the altercation between the three other men arose from a dispute over a woman.
The gunman fired at the pair, police said, but missed and hit Mr Mr al Mhanawi, who was talking on his phone outside his home.
Mr al Mhanawi was married with a two-year-old daughter.
Dozens of mourners from the Iraqi community gathered on Saturday.
Matthew Russell, 28, is known to police and described as being 185 centimetres tall, of solid build with brown hair and a beard.
He was driving a silver Holden Commodore with the registration plate CB6 2ZS, police said.