SYDNEY: At least two people were reported dead in a shootout that took place near the Sydney police headquarters, according to a report published on the BBC website.

Aerial pictures on twitter show two bodies covered with sheets on Sydney's Charles Street.

A single gunman shot dead a police civilian worker, before he was gunned down by policemen guarding the entrance of the police headqarters, according to Australian media reports.

Authorities are yet to confirm the number of casualties.

Vijay Dantu a resident who lives opposite the police building, told the Australian Broadcasting Corporation (ABC) that he heard multiple gunshots.

"I was doing some work at my home and there's a gun shot and I thought it was a tyre puncture," he said. "Then all of a sudden two more, two more shots came."

A large-scale search operation went under way in the area following the incident.