The Australian woman who was shot dead by police after calling 911 to report an alleyway assault has been identified as Justine Damond.

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Family demand answers after Sydney woman killed by US cops

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VIDEO A grief-stricken family is demanding answers after a Sydney woman was shot and killed by police in America. Family demand answers after Sydney woman killed by US cops

Ms Damond, also known as Justine Ruszczyk, was killed in Minneapolis about 11.30pm local time on Saturday after two officers responded to a report of a possible assault.

The 40-year-old, who was originally from Sydney, was a trained veterinarian who worked as a spiritual healer and meditation teacher.

She was engaged to marry her 50-year-old partner Don Damond in August.

Justine Damond was shot dead by police outside her Minneapolis home. Source: AAP

Ms Damond ran her meditation workshops at the Lake Harriet Spiritual Community, which paid tribute in a Facebook post.

"We are so sad to report the tragic shooting of Justine Damond," the community's post said.

"Justine was one of the most loving people you would ever meet. We can't even imagine LHSC without her."

Neighbours and friends are demanding answers as to why the popular woman was shot by police. Minneapolis mayor Betsy Hodges wants to know why the officers' body cameras were off.

She was engaged to marry her 50-year-old partner Don Damond in August.

"I am heartsick and deeply disturbed by what happened," she posted on Facebook.

"I have been working on behalf of all of you all night and all day and I will continue to do so.

"I share your questions and concerns and continue to seek answers."

The Minnesota Bureau of Criminal Apprehension said two Minneapolis police officers responded to a 911 call of a possible assault just north of the 5100 block of Washburn Avenue South.

Police said an "officer fired their weapon, fatally striking a woman". Source: 7 News

"At one point an officer fired their weapon, fatally striking a woman," it said in a statement.

"The officers' body cameras were not turned on at the time and the squad camera did not capture the incident.

"Investigators are attempting to determine whether any video of the incident exists."

Neighbours are now demanding answers, leaving a sign out asking police "why did you shoot and kill our neighbor and friend?" Source: Twitter

Ms Damond's personal website says she trained as a veterinarian and practised yoga and meditation for 17 years.

The Department of Foreign Affairs and Trade says it's providing consular support to the family of an Australian woman killed in the US.

A vigil for Ms Damond is planned for 6pm Sunday in Fulton, near the scene of the shooting.

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