A gun battle has erupted in Egypt's capital, Cairo, between security forces and members of a "terrorist group", according to state television.

The exchange of gunfire on Tuesday took place in the al-Amiriyah district.

A security source told AFP news agency that a policeman succumbed to his wounds following the shoot-out. Another officer was also hospitalised.

"National security received a tip-off that there was an apartment full of terrorists ... An exchange of gunfire ensued," the source said.

Private television channel CBC Extra News aired footage of the gunfire, as residents of al-Amiriyah were warned to stay inside their homes away from windows and doors.

"Initial investigations show that the suspects were planning to carry out terrorist acts," a separate security source was quoted as saying by Reuters news agency.

The source added that explosives and weapons were found with the suspects.