Shots have reportedly been fired at a shopping centre in German city Munich, sparking a major police operation.

Police said they expect there will be multiple people dead in the shooting, the German news agency dpa reported.

The Bavarian Interior Ministry confirmed at least one dead and multiple people hurt at Olympia Einkaufszentrum mall.

The shopping centre has been evacuated and the surrounding area has been sealed off.

Videos posted on social media by eye witnesses appear to show people fleeing the scene.

Munich police spokesman Thomas Baumann told dpa the attack started at a fast food restaurant in the shopping centre shortly before 6 pm local time. He said police didn't know whether they were dealing with one or multiple shooters - but there may have been more than one.

Police responded in large numbers to the shopping centre in the northern part of Munich, not far from the city's Olympic Stadium in the Moosach district of the Bavarian capital.

Munich police urged people to avoid public places. “The situation is still unclear,” they said on Twitter.

The area has been on high alert and undergoing increased security following an incident on Monday in which a teenager stabbed a number of people with an axe. Isis claimed responsibility for the Monday attack.