The girlfriend of former Kings Cross nightclub owner John Ibrahim has testified he told her he knew how a pistol came to be in her apartment but would give no more information.

Sarah Budge broke down when asked why she was still in a relationship with him, saying: “Because I don’t think he deliberately put me in a bad position.”

The 29-year-old has pleaded not guilty to three weapons possession charges, telling the jury she had no idea a stolen defaced Glock 26 pistol and loaded magazine were hidden in a teapot box in her bedroom wardrobe.

The weapon was uncovered by federal police in August 2017 when they raided a series of properties, including Ms Budge’s Double Bay unit and Mr Ibrahim’s Dover Heights clifftop home.

Giving evidence in the NSW District Court on Tuesday, Ms Budge said she was very upset after being arrested and spending the night in the cells before she was released on bail.

Kings Cross figure John Ibrahim.

She said she confronted Mr Ibrahim and asked if he put the gun in her home because she wanted to know what was going on.

“I knew I had nothing to do with it getting there,” she said.

“He told me he knew and he wasn’t going to tell me any more information.”

Ms Budge said her boyfriend told her it was best for her that she didn’t know and had repeated this in arguments they had had over the years.

The trial continues.

-AAP