'She was treasured': Family pays tribute to Sydney woman who was shot in the US

A "treasured and loved" Sydney woman shot by police in the US died in an alleyway in her pyjamas.

Family and friends of Justine Damond, a Sydney-born meditation consultant, are outraged after she was shot in Minneapolis.

Julia Reed, a family friend, said Ms Damond, who was due to be married next month, would be "very missed by the family”.

"She was treasured and loved,” she said.

Ms Damond was due to be married next month. Source: 7 News

"We will really miss her.”

Seven News understands Ms Damond was standing in the alley, in her pyjamas, talking to police when she was shot.

That's after she called police about 11.30pm local time on Saturday to report a possible assault after she heard something suspicious in an alleyway at Washburn Avenue South.

Two officers responded and one of them shot a woman, according to a statement issued by the Minnesota Bureau of Criminal Apprehension.

Seven News understands Ms Damond died in her pjs. Source: 7 News

But police did not have their body cameras turned on at the time.

The officers involved have been stood aside pending an independent investigation.

A candlelit vigil remains lit as an investigation, which could take months, begins.

Since the start of this year US police have shot dead 500 people.