Man with knife shot dead by NSW police

Police have shot and killed a man armed with a butcher's knife in regional NSW only after negotiations had stalled and a taser failed to subdue him, a senior officer says.

Todd McKenzie was shot dead in Taree after 1pm on Wednesday after police were called to the Robertson Street house over concerns for his welfare.

Specialist officers unsuccessfully negotiated with the 40-year-old over nine hours before they forced open the door and attempted to subdue him with a taser.

When this failed a police officer shot Mr McKenzie. He was taken to Manning Base Hospital where he died.

"All non-lethal actions were ineffective and unfortunately, tragically, this man was shot as a result of the conflict by a police officer," Assistant Commissioner Max Mitchell told reporters on Thursday.

"Negotiations had stalled."

Mr McKenzie's aunt, Francene Reo, told reporters there needed to be better support services in country areas for people with mental illnesses.

"Everybody understands that when you have mental health issues there are occasions when you don't cope as well as everybody else," she said on Thursday.

"The last 12 to 18 months he's been doing exceptionally well. Incidents like what happened are not a typical part of his life."

A visibly emotional Ms Reo praised her nephew as "a great country kid".

"From the time he was a little boy, he was the bravest little boy, he was a gentle, music-loving, very talented, artistic, nice kid."

A critical incident investigation into Mr McKenzie's death has been launched.