A PCSO on patrol was flagged down by concerned members of the public who reported seeing the men with the blade in Ann Street at about 3.45pm on Monday 5 September.
A description was provided and passed on to other officers, who spotted and detained two men matching the description of the suspects in nearby Denton Gardens, in Brighton Road. A knife was found close by and recovered.
Two men from Worthing, aged 44 and 47, were arrested on suspicion of possession of a knife in public. They have been released under investigation, pending further enquiries.
Investigating officer, PC Shaun Moreland, said: “This incident demonstrates the value of our PCSOs being out on patrol daily, where they can engage with the public and report any incidents efficiently.
“We would always encourage the public to approach our officers to report a crime or any suspicious activity. You can also report it online or via 101. In an emergency, always dial 999.”
In the meantime, anyone with any information about this incident is urged to report it online or call 101, quoting crime reference 47220166562.