Police are working to identify two bodies found after a blaze destroyed a unit on the outskirts of a city.
Emergency services were called to the building at Teralba in Newcastle early on Thursday morning after reports of a fire.
Fire and Rescue NSW crews managed to extinguish the blaze, but not before the building had been severely damaged.
Police officers from Lake Macquarie and the NSW State Crime Command's Arson Unit found a body during an initial search of the unit.
As searches continued on Friday, a second body was found.
Both bodies are yet to be identified.
Inquiries into the cause of the fire are ongoing, but forensic examinations have been paused while investigators conduct an assessment of the building to ensure the structure is sound.
A NSW Police spokesperson told AAP on Saturday only two people were unaccounted for, but officers won't be able to ensure there were no other victims until they are able to completely finish their examination of the premises.
