Body found in hunted gunman's car

File photo / Martin Sykes

A body was found in the car of a gunman who late last night was still on the run in the lower North Island.

The man, believed to be armed with a shotgun, shot and wounded a farmer and fired at police, police spokeswoman Kim Perks said.

The male body in the car had not been identified, but police said it was not the gunman.

Police warned residents of Norsewood, 20km northeast of Dannevirke, and nearby Ormondville and Takapau to stay inside, lock their doors and stay away from windows.

The armed offenders squad had been called in, and police closed State Highway 2 between Norsewood and Waipukurau to the northeast.

The drama began around 3.45pm after police chased a vehicle when the driver took off after a breath-test.

Police said the chase was called off for safety reasons, but shortly after the fleeing vehicle crashed at Butchers Creek, north of Norsewood, near Dannevirke.

The man then made his way through neighbouring farms carrying a gun.

One farm worker was shot but his injuries were not thought to be life-threatening.

Ms Perks said a patrol car was shot at as officers arrived at the scene.

Sam Von Dadelszen, who owns a farm on the road, said the gunman had walked through paddocks and confronted workers in three milking sheds.

Police believed they knew who the gunman was but were not releasing his name. They described him as a 46-year-old Caucasian.

- ADDITIONAL REPORTING: NZPA