Two young men are facing firearms and drugs charges after police stopped a vehicle displaying false registration plates in Rotorua.

A 23-year-old and a 20-year-old were arrested in the early hours of Thursday morning after police officers uncovered a hunting rifle, a hunting knife, ammunition, and cannabis inside their vehicle.

Neither of the men holds a firearms licence, police said.

The incident unfolded at about 3am when police patrolling Lake Road in Rotorua stopped the vehicle after a database check showed it was using false plates.

While speaking to the occupants, officers spotted a hunting knife behind the driver's back seat.