Incredible, never-before-seen video has been released showing the tense police stand-off with an armed criminal that ended with a marksman shooting him dead.

Holed up in an Adelaide motel room with his pregnant wife hostage, Matthew Morgan opened fire with a shotgun before being taken down.

Watch the video above

Police arrived at the Tollgate Motel in October 2017, closing in on the dangerous fugitive who had given them the slip a day earlier.

At the time he was wanted by police in both South Australia and Queensland and was on bail for offences in NSW.

They tried to talk him down, but to no avail.

“Mate, just calm down… throw the gun out the window,” an officer can be heard saying.

Hostage situation

The incident took a more sinister turn when officers learned he was not alone.

“I have a hostage and I will shoot her,” Morgan can be heard saying.

“I’ve got a new shotgun you dog.

“I will blow this gun all over this place.”

Matthew Morgan was shot dead after a tense stand-off in 2017. Credit: 7NEWS

Morgan's hostage, his pregnant wife, can be heard pleading for help.

"I'm pregnant, please stop,” she said.

“He said he will not talk, please send in your hostage negotiator."

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Police developed a plan to arrest him and had called in negotiators.

But before the plan was put in place, the marksman spotted Morgan lying or crouching in the bathroom and fired three shots, two of which were fatal.

The state coroner is investigating whether the officer should have opened fire when he did as there was no immediate threat to life.

The inquest continues.