BREAKING: Heavily armed police have sealed off a Leichhardt block on Parramatta Road in a stand-off with a suspected gunman.
The tactical operations unit, dog squad and police negotiators surrounded an abandoned shop near the corner of Balmain Road about 2.15pm.
A negotiator broadcast messages on a loud speaker, threatening to storm the building if those inside don't come out.
"You are surrounded by heavily armed police," the negotiator said.
"Occupants of the unit, we have a search warrant to enter the premises. We require all occupants of the unit to exit through the front door with their hands clearly off to the side with their palms facing upwards."
Police then stormed the building and remained inside for about 20 minutes before exiting without any occupants.
Residents waiting to re-enter the area were told by a police officer that the situation had been resolved but the block is still cordoned off and detectives remain on the scene.
The stand-off follows a call to emergency services at about 2pm regarding a shooting.
A police officer at the scene said a man was arrested for shooting someone in the foot.
A police spokesman said he had unconfirmed reports that a third person was barricading himself inside the building.
The manager of the neighbouring Bald Faced Stag pub said the shooting did not occur in his pub and police had been in the area since 9am conducting an operation.
He said "about 5000 police" were standing outside but the pub was still open.
Two citybound lanes and all westbound lanes of Parramatta Road remain open. One citybound lane is blocked.
Reports on Twitter said that the airspace over Leichhardt had also been shut down but Airservices Australia said this was incorrect.
More to come