Twice Olympic shooting champion Michael Diamond has been arrested for drunk driving and charged with firearms offences, the Australian Olympic Committee said on Monday, jeopardising his chances of competing at a seventh Olympics in Rio.

New South Wales police said they had charged a 44-year-old man with "high range drunk driving, not keeping firearm safe and handling or using firearm while under the influence of alcohol."

His driver's and firearms licenses had been suspended and he had been granted bail to appear at court on June 7, police said in a statement, adding that he had been involved in a domestic argument with a relative prior to his arrest.

Police said a shotgun with 150 rounds of ammunition was found in his car and that a breath analysis later showed he was three times over the legal blood-alcohol limit.

An AOC spokesman confirmed Diamond had been charged over the offences.

Diamond won trap gold at the 1996 Atlanta Olympics, defended his title in his hometown Sydney four years later and hopes to become only the second Australian to compete at a seventh Olympics in Rio, matching equestrian rider Andrew Hoy.