Mr Baluch was wanted over an alleged $270 million cocaine smuggling operation, and had been on the run for two weeks after busting free from his ankle security bracelet.
The 33-year-old, who was Australia’s most wanted man, was caught travelling to Queensland at Tweed Heads about 1am this morning in a sting involving AFP, NSW and Queensland police.
There had been speculation Mr Baluch had fled the country in a private jet from Bankstown Airport in Sydney.
But last week NSW Police said they were closing in on Mr Baluch, following a series of raids on houses in Potts Hill and Yagoona, which were linked to the runaway and his associates.
Police arrested Mr Baluch at his waterfront Bayview mansion in June on steroid charges, but he was suspected to be involved in the biggest-ever plot to allegedly import cocaine into Sydney, including 900 kilograms seized off Ecuador.
He was granted local court bail and walked from jail after forfeiting his $4 million property and agreeing to wear an electronic monitoring anklet, which he is believed to have cut off before going on the run.