A man has been arrested at Windang in Wollongong's south and is in police custody after shots were allegedly fired in a suburban street.
It's reported an armed man, who was wearing a flak jacket allegedly discharged a rifle near a local bottle shop, before reportedly taking a hostage inside a shop.
A terrified witness reportedly shot video footage of him armed with a rifle stalking the streets outside shops.
Police were called to the scene shortly after 9 am following reports of an 'active shooter' roaming the streets.
The man reportedly took a hostage inside a dive shop during the incident.
Police closed Windang Road in both directions and officers saturated the area.
Police said, "There are now no active threats to the community."
Officers remain in the area and there have been no reports of injuries.
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