Police found the MP40 submachine gun after they pulled over a vehicle on the Central Coast on Sunday night, reports the Australian Broadcasting Corporation (ABC).
Police seized a bag containing the gun, a magazine and 60 rounds of ammunition. The gun's barrel was missing.
The gun appeared to be in working order.
Shane Casey, senior curator at the Australian War Memorial, said the weapon was used extensively by the German army in the Second World War.
"It's a very robust weapon and was also souvenired during the war by Allied soldiers," he told the ABC.
Casey said the weapon was collectible.
The weapon will undergo a forensic examination to determine if it was linked to any shooting incidents.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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