Homicide detectives are investigating after a man was shot twice by police at Bowral in the New South Wales Southern Highlands yesterday morning.
The 22-year-old is in a stable condition in Liverpool Hospital after being shot in the chest and the arm.
Police have confirmed the shooting took place when officers were responding to an incident on Short Street about 6:00am AEST on Saturday morning.
Authorities say the man was shot after he threatened a number of officers.
Acting Assistant Commissioner Kyle Stewart says police fired after negotiations with the man broke down.
However, Assistant Commissioner Stewart refused to be drawn on whether the man was armed.
"At this stage I'm not able to rule either out or in a firearm," he said.
"It's clear that there were a number of threats made to the officers involved and the threats that were made, the details of those will be determined by the critical incidents investigators."
No officers were injured in the incident.
Neighbours have told the ABC most of the street was taped off as officers investigated the scene.
A critical incident investigation is underway.