A man has been arrested in Sydney after he rammed a car filled with gas cylinders into a police car park, reportedly claiming he had a bomb.

The man suffered burns in the incident, according to Australian media reports, which sparked a major police operation in the Merrylands area to the west of the city.

"The perimeter remains in place as a precaution while officers from the Rescue and Bomb Disposal Unit attend and examine the vehicle," a police statement said.

"No members of the public or police officers were injured during the operation.

"The circumstances regarding the incident are in the early stages of being confirmed and no further details are available at this time."

The car crashed into the underground car park at around 7pm local time (10am BST), Sydney police said.

According to ABC News, a police cordon was set up and the man was taken into custody at 8pm. He has since been transferred to a local burns unit.

Police said the cordon remained in place and a bomb disposal unit was examining the car "as a precaution" before the wreckage could be cleared.