People were prevented from leaving The Plaza as police searched.

Police dogs join the man hunt near The Plaza in Palmerston North.

A man, believed to be involved in the incident, was arrested by police on Fitzherbert St.

A car believed to be involved in the incident.

The man at the centre of a police manhunt has been found and arrested in Feilding.

Dyllan Barry Vaughan, alleged to be the driver involved in an extensive police pursuit from Whanganui that ended with a manhunt in The Plaza yesterday, was found shortly after 4pm, Detective Shelley Ross said'.

His father, Peter Vaughan, said this morning his son got "mixed up with the wrong crowd" five or six months ago and things had been going down hill since then.

WANTED: Dyllan Vaughan.

He had tried to help him get back on track, but he had moved out of home and he only saw him intermittently.

Dyllan had been living in Feilding, but had moved to Palmerson North about a week ago.

Peter encouraged his son to turn himself in, saying there was more going on with him than people knew.

ROBERT KITCHIN/FAIRFAX NZ SCENE: A car, believed to be involved in today's dramatic incident.

"At the end of the day I don't condone what my son has done, but there's more too it than what you can see."

"I want this kid removed from off the street, if he's off the street we can see what's happening with him."

Detective Shelley Ross said he was considered dangerous and should not be approached.

Vaughan had been in a car that fled police from Whanganui to Palmerston North before crashing outside Pak 'n Save on Ferguson St yesterday afternoon.

He was believed to be in The Plaza shopping centre, however police stood down their search just before 2.30pm.

Plaza shoppers were allowed to leave the mall shortly afterwards.

Police were seen entering the roof space above Westpac inside The Plaza as they continued their search around 2.45pm.

Vaughan made headlines last year when he was allegedly subjected to a expletive-laden tirade from a police officer who pulled him over in Feilding on September 3.

Vaughan lodged a complaint with the Independent Police Conduct Authority, which is still investigating the matter.

Plaza manager Andrew Heaphy said they were doing everything they could to help with the investigation.

They had provided the police with CCTV footage of the man.

Earlier in the afternoon, a 27-year-old was arrested by police and taken away for questioning.

Simon Woodward briefly appeared in the Palmerston North District Court this afternoon and entered no pleas to four charges.

According to court documents, the Palmerston North shearer is accused of unlawfully getting into a stolen vehicle and driving while disqualified.

He and Vaughan are jointly charged with two counts of theft for alleged petrol drive-offs at Mobil in Bulls and Gull Tremaine Ave, Palmerston North.

Woodward did not apply for bail and was remanded in custody until next month.Duty lawyer Mark Alderdice said Woodward might appear before then if he lodges a bail application.

He was applying for legal aid and should have a lawyer assigned before his next appearance.

Palmerston North woman Cyan Aanensen was inside The Plaza, where the 17-year-old headed after when he got out of the chased car.

"There was police everywhere. I was in K-Mart and they were just searching through the aisles.

"Lots of people [were] saying they were scared."

Central districts police communications spokeswoman Sara Stavropoulos said the intermittent chase started after the car took off from a Whanganui petrol station without paying this morning.

Along the way, police deployed road spikes but these were unsuccessful.

The two men in the car had led police and a Helipro helicopter through Halcombe and Feilding before colliding with another car on Ferguson St about 1pm.

The chased car came to a stop outside The Plaza.

One man was arrested but the other had fled from the car into the central city shopping mall.

"Quite a few" police were currently searching for the man, Stavropoulous said.

The Helipro helicopter had been circling The Plaza, but was stood down.

The car involved in the incident, a blue Subaru sedan, was believed to have been stolen from a Taupo address.