POLICE have declared the incident at Algester as an "emergency situation".

Police media said officers were searching for two people believed to involved in a "firearm incident" at Woodridge this morning.

Early investigations have indicated that just before 10am police were called to Wembley Rd at Woodridge after shots were fired at a car following an altercation between the occupants of two vehicles.

One of the cars left the scene and has now been found in Woodland St at Algester.

About 1.30pm a witness, Kirsten Telser of Silkwood Street, spotted a man on a red bicycle, shirtless with a black shirt wrapped around his shoulders.

He disappeared between two houses on Bridelia Street. Police were searching the street with dogs.

Uniformed police and plain clothes police are currently patrolling the area, searching for the two people.

Police are asking those located inside the police cordon to stay inside their homes and contact 000 immediately if they notice any suspicious activity.

An Emergency Declaration has been made and affects Learoyd Rd, Paradise Rd, Ridgewood Rd, Algester Rd and Beaudesert Rd.

Police are also asking anyone who witnessed the alleged shooting this morning to call CrimeStoppers.

They have also reported the car to be a black Audi A4 sedan.

At the scene, the police presence is heavy with officers in every street in an area around Ridgewood Rd.

Police are checking the boots of cars and in the windows of cars.

It has been confirmed that St Stephen's Primary School and Algester Primary School are in lockdown.

Residents in the area have said they were told by police to be on the lookout for a man possibly with a bike.

They were also warned the man is possibly armed with a gun.

One resident on Ridgewood Rd, Harry Smith, said he and his mum had not been visited by police but were staying inside their home.

Mr Smith said the street was "like a ghost town" while his mum, Julie, said she had been out on the street earlier and noticed several streets were blocked off by police cars.

"I've locked all my doors," Mr Smith said.

"I have my German shepherd on patrol out the back as well so I will know if anyone comes into our yard. All I know is police are looking for people who are hiding out there somewhere.

"Everything's pretty quiet."

Police have blocked off where Whitewood St meets Dalmeny St, sending every vehicle back.A spokesperson said it is believed police have pursued a car all morning following a road rage incident at Southport on the Gold Coast before travelling to Marsden and now to Algester.

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Police at 12.25pm said they are currently “attempting to speak with the occupants of a vehicle that was allegedly involved in an incident in Logan this morning”.

Check back for updates as this story develops