An inner-Sydney suburb has been placed under lockdown after a man allegedly armed with a shotgun set fire to a stolen vehicle before escaping on foot.
Emergency crews were called to a car park on Williams Parade in Dulwich Hill at about 10.20am on Friday after reports of a stolen van.
When officers arrived, they were told the vehicle had allegedly been deliberately set alight and that the man responsible was carrying a firearm.
Police said the man fled on foot and was last seen on Union Street.
Businesses and cafes nearby were ordered into lockdown, while Dulwich Hill Public School was also secured. Locals said children sheltered beneath their desks during the incident.
Heavily armed tactical officers were deployed across the area, supported by police helicopters.
A major manhunt was subsequently launched for the suspect.
Witnesses told 9News the man was believed to be carrying a sawn-off shotgun. Some also reported seeing an altercation involving a group of people shortly before the car was set alight.

A manhunt is underway for a man (pictured) reportedly seen carrying a firearm in Dulwich Hill, in Sydney’s Inner West

Parts of Dulwich Hill, in Sydney’s inner west, remain locked down after reports of an armed man

Heavily armed tactical police and helicopters were sent to the area near Williams Parade and Constitution Road on Friday morning
Firefighters extinguished the blaze, and authorities said no injuries had been reported.
Police established a crime scene, closed nearby roads and urged motorists to stay away from the area.
Light rail services between Dulwich Hill and Lilyfield were also suspended.
Police described the wanted man as being of Caucasian appearance and aged in his 20s. He is about 160cm tall, has a thin build and shaggy hair.
He was last seen wearing a blue T-shirt and long black pants.
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Superintendent Despa Fitzgerald said on Friday afternoon that police had carried out an extensive search but had not found the man.
“An extensive search was conducted by PolAir, police on the ground and our dog squad, which did not locate the male,” she said.
“The streets have been locked down to continue the search.”

A manhunt is underway for a suspect believed to be carrying a sawn-off shotgun

Superintendent Despa Fitzgerald warned the public not to approach the man and to call triple zero immediately if he is spotted
Superintendent Fitzgerald warned the public not to go near the suspect but call police immediately if he is spotted.
‘Do not approach this person. We understand he is armed with a shotgun,’ she said.
She said emergency services had received one report of a man with a shotgun and that ‘no shots were fired’ at the scene despite earlier reports.
Three witnesses were at the scene and confirmed the man was armed, Superintendent Fitzgerald said.
‘They were threatened with a weapon as they were trying to leave the area,’ she said.
She confirmed the vehicle in question was a van, which was stolen from the Inner West Area Command ‘days ago’ and was spotted by members of the public on Friday.
Forensic investigators are at the crime scene and police have established a large exclusion area as they continue to search for the suspect.
Some units remain on lockdown and many locals who live in the area are being escorted by police back to their homes.
Traffic in the area is also blocked off. Authorities are due to assess the Light Rail closures over the next few hours.
As inquiries continue, anyone with information is urged to contact Inner West Police Area Command or Crime Stoppers on 1800 333 000.