Police spoke with the woman before later executing a search of her home at Rest Point Parade in Tuncurry, news.com.au reports.
Inspector Paul Fuller told news.com.au that inside the home, officers found a number of birds, including two magpies and a lorikeet. He alleged both the magpies had been de-beaked.
One of the magpies had to be taken to a local vet and was euthanised due to the extend of its injuries, according to police.
"Numerous items relating to the alleged cruelty of animals were seized from the home," a statement from police said.
"Mobile phones seized from the house depicted images and videos of animals, including a dog and rabbit, that had allegedly been mutilated in a public location.
"Police will allege in court that the woman attends public places in both Forster and Tuncurry and gains the trust of animals by feeding them, before taking them home and torturing them over an extended period of time."
The elderly woman would then attend different vet clinics in the Forster area and claimed she'd tried to rescue the animals, asking for the animals she'd injured to be euthanised, police said.
A number of local veterinarians were now assisting the investigation, Inspector Fuller told news.com.au.
The woman's home is located in a cul-de-sac surrounded by waterways and a nearby nature reserve.
Inspector Fuller told news.com.au there was no evidence the woman was putting videos of the cruelty online.
On Saturday, the woman was arrested and charged with commit an act of aggravated cruelty on an animal, authorise carriage etc of animal which unjustifiably inflicts pain, three counts of being in charge of an animal and fail to provide vet treatment and two counts of commit an act of cruelty on an animal.
She was also charged with deal in animals (Biodiversity Conservation Act) and contravene licence (Biodiversity Conservation Act). She was granted bail and will appear at Forster Local Court on Wednesday, May 22.
The woman lived with her husband. He has not been charged.
Inspector Fuller thanked the public for their help in the investigation, and has urged anyone with further information to contact Forster Police on (02) 6555 1299.