A Chinese student charged with murdering a Sydney taxi driver was arrested after trying to hide four bags of bloodstained clothing and knives, a court has been told.

The four shopping bags, found by cleaners in the library of Macquarie University, also allegedly contained a watch belonging to the 67-year-old driver Robert Woodger.

Xinfei Gu, 22, of Eastwood, had been found hiding nearby by detectives, Ryde Local Court was told.

Gu, an accountancy student, was refused bail on the charge of murder, but police have been unable to find Mr Woodger's body.

The taxi, which contained bloodstained clothing, a knife, a tomahawk with a price tag attached and gaffer tape, was found abandoned by a rubbish truck driver on a street at Eastwood, in Sydney's north-west, about 6.15am (AEST) on Wednesday.

A police fact sheet tendered to the court said "pools of blood" were found in the taxi's interior, on the driver's door and on the roadway.

A bloodied footprint was found on the back seat.

Police do not believe Mr Woodger, a married man from Coogee, is still alive.

Detectives attached to Strike Force Russellton, established to investigate the murder, arrested Gu about 12.30am on Thursday.

Police said when they interviewed Gu, who spoke poor English, he said he had been stopped by a man, who was not Mr Woodger, but who was driving the taxi.

After a short conversation this man had asked him (Gu) to drive the taxi.

Gu said he got in the car, started driving, and afterwards noticed the man was covered in blood.

So he pulled up the car and fled.

Police said CCTV footage from the cab showed Mr Woodger having an animated conversation with a man in the back seat between 3.17am and 3.59am.

Forensic analysis is yet to be carried out on the bloodstained taxi and Gu denies any knowledge of the murder.

When Gu was arrested, he was allegedly found hiding near the shopping bags, with injuries to his fingers.

When asked about the wounds, Gu allegedly said: "He had a knife and grab (sic) the knife and it cut my fingers".

When asked what he did after that, Gu allegedly said: "I opened the door and ran away to home".

Magistrate Jennifer Betts was told Gu had planned to leave Australia on the day of the murder and that police had found his bags packed in the garage of his boarding house.

Ms Betts refused a bail application by Gu, who represented himself.

He was remanded in custody to face Central Local Court on June 25.

http://news.brisbanetimes.com.au/chinese-student-accused-of-cabbie-murder/20073421-jn4.html