Police have released a man following a gun scare which caused parts of Southern Cross Station to be evacuated.

Police responded to a report of a man observed with something wrapped in black fabric at the station just before 6pm and a train bound for Albury was evacuated.

The item was perceived to look like a firearm, but no firearm was actually sighted.

Police said a man was initially spoken to by police and has since been released.

The area will continue to be patrolled but police say there is no danger to the public and train services will resume as normal shortly.