According to gardai, two men who stopped at a foot and mouth border checkpoint have been arrested and a firearm recovered from their vehicle.
The pair are being held under Section 30 of the Offences Against the State Act at garda stations in Buncrana and Burnfoot.
The two men are being questioned by gardai in relation to an armed raid at a Co Donegal nightclub this morning.
At around 3.45am this morning, three armed and masked men burst into the Redcastle nightclub where a number of staff were finishing up for the night.
The staff, as well a number of gardai who were called to the scene, were tied up and held at gunpoint before the gang made off towards Derry with a hostage.
Gardai chased the men as far as the border, at which stage the RUC was called in and the hostage was released unharmed.