Watch: Armed police arrest man, claims suspect was tasered, pepper sprayed and bitten by police dog

Dramatic video has emerged showing armed officers surrounding a suspect who is detained on the ground after a vehicle attempted to flee from police in Palmerston North this afternoon.

The incident occurred at 2.40pm, sending a local school into lockdown.

A police spokeswoman said a fleeing vehicle was tracked to Bourke St.

The occupants fled on foot after abandoning the vehicle at 3pm. Two men were arrested soon after by police, who also recovered a firearm.

A worker at a nearby store, who wishes to remain anonymous, said they first heard tyres screeching to a halt before the loud bang as the tyres were spiked.

He and his co-workers went to see what was happening and saw swarms of armed police surrounding the car.

"The first guy came out with his arms up, looking absolutely terrified, the police jumped on him super quickly."

The man began filming the incident, capturing the final moments of the arrest.

Before the video began, the witness said he and his co-workers watched on in shock as the man was subdued by police.

A local school, Central Normal School, was placed into lockdown at 3.20pm from police direction due to the incident.

In a statement to Facebook, the school said they had liaised with police who were patrolling outside the school.

The lockdown was lifted at 4pm.