A double murderer who dismembered his victims’ bodies has been caught on a Sydney street 24 hours after cutting off his ankle bracelet and skipping parole.

Damien Anthony Peters, 50, was arrested by officers with the help of the dog squad in Sydney’s inner west late on Monday afternoon.

He was spotted by plain clothes officers walking along the street and was arrested without incident in Church Street, Petersham.

Peters, who was wearing black jeans and runners along with a white tank top that showed off a tattoo of a snake wrapped around a panther on his right arm, is accused of breaching his parole conditions.

On Sunday, Peters was transported from his parole accommodation to Prince of Wales Hospital in Sydney’s east, after other residents became concerned for his welfare.

After being treated at the hospital during the afternoon he was free to leave and, at some point, removed his ankle monitor.

Detective Superintendent Rohan Cramsie said the bracelet, which was found in nearby Kensington, was made of “robust” material and a knife may have been used to cut it off.

Peters pleaded guilty to murdering and dismembering two of his male lovers in his Surry Hills flat in 2001 and was jailed in 2002 for 21 years with a non-parole period of 13 years.

He was first eligible for parole in September 2014 but was not released until November 2016, a State Parole Authority spokeswoman told AAP.

His sentence would have expired in 2022.

When he faced court for the murders it emerged Peters, then 32, had stabbed Tereaupii Akai, 50, twice in the neck before dismembering his body and throwing it in a council bin.

About eight months later, Peters stabbed 57-year-old Bevan James Frost to death while giving him a massage in bed before cutting up his body.

Detectives investigating Mr Akai’s disappearance found Mr Frost’s remains in the bath when they went to Peters’ flat.

The parole authority, when considering his release, looked at his completion of programs and counselling, day release programs, behaviour in prison and minimum-security classification.

He was released under strict conditions that dictated his movements and was ordered to undergo more counselling.

“There was also a need for the offender to have a period of parole supervision prior to the expiry of his sentence in 2022 to facilitate contact with appropriate community support services,” the parole authority spokeswoman said.