Police in the US have released chilling footage of the moment a man opened fire on a crowd outside a busy nightclub, wounding five people and sending hundreds fleeing in fear.

The video was captured on a mobile phone by a witness standing just a few feet away from the gunman, and has been described as a “great piece of evidence” by the force in Stamford, Connecticut.

It shows a man in a red t-shirt and baseball cap lifting a handgun fitted with a red laser sight and firing repeatedly, as people in the background scream and run for their lives.

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One man is already on the ground as the clip begins, and another – wearing a stripy blue shirt – is hit as he tries to back away.

Police said they had released the footage in an appeal for witnesses to come forward, and stressed that though the footage was “graphic and not suitable for children”, no one who features was killed in the shooting at around 1.30am on Sunday.

It began, officers told the Stamford Advocate, with an argument over a woman. The shooter reportedly drew his gun – for which he had received a licence just three days earlier – after he was hit in the face during the altercation.

All five victims of the shooting were treated at Stamford Hospital for non-life-threatening gunshot wounds, and police said they believed none of them were actually involved in the original altercation itself.

One, Domingo Ramos, told reporters he and his friend had been “nearly 300 feet” – the length of a football pitch – away and leaving a different nightclub when a stray bullet passed through his left forearm.

In all, 10 shots were fired in the incident and a gun with a single remaining bullet in the chamber was recovered by Stamford Police officers, who had heard the gunfire and were quickly on the scene.

They arrested 22-year-old Dayron Wills, who appeared in court on Monday afternoon charged with five counts of first-degree assault, as well as first-degree reckless endangerment, unlawful discharge of a firearm and possession of marijuana. Bail was set at $1 million (£580,000).

Speaking about the extraordinary footage of the incident, which was later shared via social media, Stamford Police Lieutenant Diedrich Hohn said the witness had started filming when he saw people fighting outside Tino’s Nightclub, a newly-opened venue.

“He pulled out his phone to document the fight, and the fight turned into gunfire,” Hohn said.

He added: “We don't recommend people doing this – although it turned into a great piece of evidence.”