A man has been shot by police after an incident at a petrol station in south-east NSW.

Officers in Queanbeyan responded to reports of a man armed with a shotgun and shots being fired on Monaro Street at around 4am this morning.

The man was found at a service station and, after allegedly firing a number of shots towards six officers, was himself shot by police.

The armed man confronted police at the service station in Queanbeyan before he was shot and taken to Canberra Hospital. (Nine)

9NEWS understands the man had been walking along the street allegedly firing shots at random before he was confronted by police.

"The man refused to surrender at that point, he was shot once in the hip," NSW Police Assistant Commissioner Peter Barrie today told reporters.

"At that point he remained conscious and quite vocal (and) he was disarmed."

The man was then treated at the scene before being taken to Canberra Hospital, where he underwent surgery to the wound on his hip.

He remains in a stable but serious condition in hospital.

The incident will now be the subject of an internal police investigation. (Nine)

It is understood the man was also found on the street without any form of identification.

There have been no reports of any injuries sustained by members of the public or the police officers on the scene.

Witnesses have told 9NEWS the gunshots could be heard ringing out in surrounding streets and staff at a nearby service station were also told to hide in a back room as the incident unfolded.

Ass. Comm. Barrie also said that police responding to the incident were forced to take shelter while the man fired shots.

"They've attempted to contain the incident as best they could. Unfortunately that wasn't able to be done and the offender confronted one of our officers and was shot at that point," he said.

"We don't like to see any injury to anyone in these sorts of incidents. We will respond and take action in these sorts of matters.

A man has been shot by police at a petrol station in New South Wales' south-east after allegedly firing towards officers. (Nine)

"We cannot let people discharge firearms in public places and continue to do so and put the lives of not only the police and the community at risk.

"This is a very significant incident this morning. The police have done very well in the initial response. We're all quite pleased that they're all able to go home safeand well to their family."

A NSW critical incident team will now investigate the circumstances surrounding the incident, police said.

That investigation will be subject to an independent review.

Anyone with information that could assist police enquiries should contact Crime Stoppers in 1800 333 000.