Conrad Peter Lardner, 48, has been accused of murdering 39-year-old David Vale on the NSW mid-north coast just before midnight on March 1.
Emergency services were called to a South Kempsey premises and while paramedics treated Mr Vale, he died at the scene.
Lardner was arrested on Wednesday at a home in Airds where a number of items relevant to the investigation were seized by police.
He appeared on Thursday at Campbelltown Local Court.
In applying for bail, defence lawyer Isabel Attwool claimed there was a weak, circumstantial case against Lardner based on "unreliable" witnesses.
However, police prosecutor Robert Trethewey rejected this saying there was an "extraordinarily strong case" to bring over the alleged murder.
"There is a dying declaration by the deceased … The deceased names the accused," he told the court.
Lardner had a "direct involvement" and was "principally responsible" for the murder, Mr Trethewey said.
Multiple witnesses and CCTV footage also corroborated the events surrounding the alleged incident, Magistrate Rana Daher heard.
The weapon used in the attack has not yet been found.
Ms Attwool also argued that Lardner should be bailed because he had diabetes and asthma and would have difficulty accessing medication in prison.
She also claimed he would be at a "potential risk of harm" behind bars as an Aboriginal man.
These reasons were rejected by Ms Daher who dismissed the bail application.
Lardner's family supported him in court, waving as he appeared wearing a cream-coloured hoodie via video-link and shouting "love you" as the hearing adjourned.
His family declined to comment to reporters outside court.
Leearna Nicole Davis, 31, was also arrested at West Kempsey and has been charged with accessory after the fact to murder.
She appeared at Kempsey Local Court on Thursday and was also refused bail.
Lardner will next come before Kempsey Court on July 21 while Davis will next appear on July 19.
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