Omar Omar, 31, was charged on Monday with the cold-case murder of Kevan Safwan, gunned down near the Omar home in Riverwood in April 2012.

Omar's brother had feuded with Safwan over money and their dispute escalated in the days before the shooting, lawyer John Korn told Sydney's Central Local Court during Omar's bail application on Friday.

Mr Korn told the court Safwan, 38, made repeated calls to Omar's brother, saying "you think you gonna be in jail? You'll be six feet under" and other threats.

The murdered man said "I'll take you at home. Don't let me get to your house and get to your family," according to Mr Korn.

Police recorded Omar being informed of the threats and then making a call to organise a gun on the night of the murder, Mr Korn said.

But while Safwan was shot in the head, back and arm when he arrived in the street about midnight, Mr Korn said police had no evidence Omar was the shooter.

"Are they capable of establishing it was the offender? It is simply their belief it could be," he said.

"They've been looking at this for seven years."

He said magistrate Margaret Quinn could not possibly say it was a strong case, based on the material before her.

"I'm not sure you can even say this is an arguable case," he said.

Mr Korn said Omar was no flight risk, had strong family ties and had a person willing to offer property and cash valued at $1.1 million as surety.

Police argued the case was a strong circumstantial one which showed Omar had motivation to kill and was aware of the threats made against the family.

After the shooting, a witness identified a person matching Omar's description running down the street. Police also couldn't find Omar shortly after the murder, having spoken to him about 9pm that night.

Ms Quinn has reserved her decision until later on Friday.

Australian Associated Press