Shots have been fired at police in rural Waikato, with the gunman still on the loose.

Around midnight, police tried to stop a speeding vehicle on Thames St in Morrinsville. A pursuit led to Kurunui Rd, where one of the vehicle's occupants got out and shot at police.

"A second police unit arrived and fired shots in return, before taking cover in nearby farmland," said Waikato District Commander Superintendent Bruce Bird.

The armed offenders squad soon arrived to take over. No officers were hurt in the exchange of gunfire.

Police say they are speaking to one person who is assisting them with their enquiries, but have yet to locate the gunman.

A police Eagle helicopter is also scouring the area.

Resident Craig Burmester told NZME he and his wife were woken by gunfire about 12:15am. There were an "awful" lot of shots, he said.

"It was pretty scary. It's just lucky no one was injured," he said when he realised it was a shoot-out.

Meanwhile, Fairfax reports it's understood one of the weapons involved was an AK47 assault rifle, and a red Holden was left with five bullet holes in the windscreen while a nearby police car had more shots through its rear window.

Cordons are in place.

Newshub.