Shootout at Sydney police station: reports

A police operation is under way near Penrith and St Marys Police Stations in western Sydney, with reports a man opened fire and was shot by armed officers

"A police operation is underway in the vicinity of St Marys and Penrith Police Stations. Police are urging all members of the public to avoid the area until further notice," NSW Police tweeted on Wednesday night.

A man opened fire, injuring an officer, and was killed by police, News Corp reported.

Witnesses from a nearby hotel - which was in lockdown - told the Seven Network they saw a volley of gunfire involving around 25 shots.

The witnesses said they saw police drag a dead man into the station and a second person fled, sparking a manhunt.

A police spokeswoman could not confirm the reports to AAP, but did confirm that resources including the riot squad had been deployed.