A primary school in Beveridge, north of Melbourne, has been declared safe after reports a gunman had be seen on school grounds this afternoon.

Police contained the area and conducted a search for the man after being called to the scene around 2.30pm.

The school enacted its emergency management plan as a precaution.

A group of four eight-and-nine-year-olds reported seeing the masked gunman, prompting the police response.

Parents were alerted of the situation over text message and all parents who made their way to the school were told to stay inside their cars and blocked from entering the gates.

After an hour, parents were allowed to enter school grounds to pick up their children, some escorted by police.

Mother Donna Birrell said she'd been told a male gunman dressed in black and wearing a ski mask had entered the school grounds carrying a firearm.

A police spokesman subsequently said that children were being allowed to leave the school with their parents.

Beveridge Primary School principal Steve Fernando said it was better to “always ere on the side of safety” in situations like today’s.

Streets around the school were closed as police scoured the area but have now been reopened.

No threats were made and no injuries have been reported and there have yet to be any confirmed sightings of the gunman.

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