Alleged murder accessory fights for bail

A man charged in connection with a Sydney hotel room murder will continue to fight for release after being put back behind bars.

Elias Dimarelis, 31, fronted Sydney's Central Local Court on Wednesday after police investigating the Kent Street killing in November last year laid a fresh firearm charge against him.

Police will allege they've uncovered damning CCTV footage taken from inside Kings Cross strip club The Love Machine several days before the November 16 murder.

They say the footage shows Dimarelis handing over a .38 calibre pistol to 30-year-old Hasan Fazlilar, who has been charged with a 44-year-old man's murder.

The footage allegedly shows Dimarelis handing Fazlilar the revolver about 8.45am on November 13, which he's seen shoving down his pants.

It's alleged the firearm was later used in the murder and has not been seen since.

Prosecutors say Dimarelis has made admissions over the charge.

But defence lawyer Sophie Toomey told the court the footage barely showed her client holding anything, let alone a prohibited pistol.

Ms Toomey said the charge fell at the lowest end of the scale for offences of its type and could take 18 months to finalise, imploring the court to release Dimarelis on bail.

Dimarelis was earlier freed on conditional bail charged with being an accessory to the murder of the man found dead inside the CBD hotel.

Ms Toomey said he had spent 10 days behind bars before his release, and had come perilously close to falling into a coma.

She said Dimarelis was a type one diabetic and his blood-sugar levels had skyrocketed by 20 points over the period, putting him at serious risk of harm.

"What we're saying is that management of his condition clearly proved impossible in a corrective services setting," Ms Toomey told the court.

She rejected the Crown's claims he'd refused treatment and diabetic food, saying Dimarelis had been kept in lockdown and denied evening meals.

Crown prosecutor Emma Curran argued he would be treated properly in custody and taken to hospital in an emergency.

Ms Curran said Dimarelis faced an extremely serious charge and the case against him was strong.

Magistrate Michael Crompton rejected Dimarelis' bid for release.

"I'm not satisfied that the defendant has shown cause as to why his detention is not justified and therefore his application is refused," he said.

Outside court, Ms Toomey vowed to keep fighting for her client's release.

"We'll be applying to the Supreme Court for bail," she told AAP.

"We'll lodge it today and see how soon we can get on."

Dimarelis is due to face court again on May 19.