POLICE have confirmed that they have a man in custody after earlier closing off the main street of Bondi over fears a gunman had barricaded himself above the AquaBar.

It is believed police snipers took up position across the road from the gunman in the kitchen of North Bondi Surf Life Saving Club.

Police media have said the man is wanted on several outstanding warrants but would not confirm he is wielding a gun.

The man is holed up in third floor apartments above AquaBar and is reported to be moving between the units.

A man who walked out of the closed North Bondi Club dressed in board shorts with a towel said he was told that there was “a crazy guy with a gun but they don’t know where the guy is.”

A teenage boy said police had been inside the surf club since around 4.30pm

“I think there is a sniper up the top of the building,” he said.

Campbell Parade is blocked from Wairoa Avenue to Brighton Boulevard.