Police have confirmed they have launched an internal inquiry into operations at a Sydney police station which has been accused of artificially lowering crime figures.

A News Limited newspaper report out today says New South Wales Police have launched an inquiry into St George Local Area Command over suspicions that senior officers tried to reduce crime by incorrectly recording incidents.

Police have confirmed that a Professional Standards Command inquiry is underway but they cannot comment on the investigation.

They have released a statement saying while the matter appears to be an isolated one, it is being investigated thoroughly.

Police say the community can be assured that standards set for the recording of crime data in New South Wales are the most stringent in Australia and any deviation from that standard is thoroughly examined.

The New South Wales Ombudsman is overseeing the investigation.