Police have confirmed a man has been shot dead by an officer in the inner Sydney suburb of Redfern.
The man was shot in a laneway outside Redfern police station.
It's believed two shots were fired, at around 11:40am.
The officer involved is a leading senior contestable attached to the Redfern local area command.
Acting Deputy Commissioner Mark Murdoch said the policeman is distraught and has been comforted by his colleagues.
“No police officer goes to work with the intention of discharging their firearm,” Murdoch said.
A critical incident investigation is now underway.
Police say officers performed CPR on the man.
Paramedics reportedly worked for 15 minutes to try and resuscitation the shot man, but he died at the scene.
The coroner will be investigating the man’s death.
No police officers were injured.
A shopkeeper says he heard the shots being fired and came out to see four or five officers pointing their guns at the white truck.
"At that moment the truck slammed into the pub and the police just put their hands down," local tobacconist Min Le said.
Police say the man was travelling in a stolen vehicle when he was shot.
Two women suffered minor injuries, after the truck crashed into the side of the Railz on Regent hotel.
The pair were reportedly walking past when the crash happened.
The two pedestrians were taken from the scene by ambulance to St Vincent's Hospital, where they are expected to make a full recovery.
Redfern and Regent streets were closed to traffic, and the area behind the police station has been cordoned off.
Dark tarpaulins have been put up to shield the area from the public.
The top of the van hit a bottle-shop sign which is dangling from the roof of the Railz hotel.
The manager of Club Redfern said he missed the shooting by a matter of minutes.
"I heard glass breaking and then heard loud bangs," Anthony MacAlpine told AAP.
"I think it was three or four (bangs)."
Mr MacAlpine says that despite the shooting he feels safer in inner-city suburb than in most parts of Sydney.
"The work [Redfern] police do is second to none.
"This was a no-go zone at one point, but now it's open to everyone because of the great work they've done."
Police want anyone who witnessed the incident to contact Crime Stoppers on 1800333000.