Australian police have charged two men, both in their 20s, for the alleged murder and kidnap of a Sydney grandfather, who is believed to have been targeted by mistake.

Widower Chris Baghsarian, 85, was forcibly taken from his North Ryde home in a pre-dawn raid on 13 February by several men who bundled him into an SUV.

Police say he was not the intended target of the alleged attack, which local media have reported may have been aimed at a family with links to organised crime.

On Wednesday, Gerard Andrews, 29, and Daniel Stevens, 24, were arrested and charged with the alleged kidnap and murder. Both were refused bail and were due to appear in court on Thursday.

Earlier, police said both men were previously known to authorities for minor matters. More arrests were likely, investigators added, as they believe others were involved in the alleged kidnapping and murder.