A firearms incident has evolved in Dunedin, where a person pulled out what appeared to be a gun, police say.

A large police presence could be seen outside the Dunedin School of Art on Reigo St. Police confirmed no-one was injured and no shots were fired.

Someone allegedly pulled out what appeared to be a gun and pointed it at a wall, a police spokesperson told Newshub. They have yet to be located.

"Police are currently on the ground conducting inquiries," the spokesperson said.

"We will provide further information when it becomes available."

Newshub.