Police have arrested a man and a teenager after reports of three armed men entering an public housing complex in Carlton in Melbourne's inner north.

Police said they were not looking for anyone else.

The Carlton Primary School and a local child care centre were locked down as police hunted for the men who had been reported as being armed.

Police arrested an 18-year-old and 17-year-old, both from Carlton, just after 7:00pm.

Senior Sergeant Mia Paterson said police had not recovered a firearm.

She said the two males had been arrested after they were seen running in separate directions.

She said police gave chase, arresting one in Princes Street and the other in Rathdowne Street.

Specialist police officers stood outside a housing commission block in Carlton. ( ABC News )

Earlier, parents, staff and students at Carlton Primary School were told to remain inside while the manhunt was underway.

Parents of children at a nearby childcare centre were also told by local council workers that their children could not be collected.

Police later praised residents for their conduct.

"Everyone's been really understanding and very cooperative, so we're very grateful for that," Sen Sergeant Paterson said.