Police have cordoned off roads for an Armed Offenders Squad call out in the Napier suburb of Tamatea.
Residents report a heavy police presence and a sound like gunfire near Rochester and Bristol Streets, with the roads cordoned off.
Police have since said reports of shots being fired are incorrect.
A spokesperson said as the situation is ongoing, there is no further information at this time yet it's understood the incident developed after police were trying to locate a person who has a warrant to arrest. It's beleived the man is still holed up in a residential address.
A St John spokesman said they had been asked by police to be on standby at a safe point near Bristol St.
Residents have been blocked from returning to their homes.
More to come.