An investigation is under way after shots were fired in Sydney's southwest on Sunday.

Police were called to Clunes Lane, Canterbury, about 2.15pm (AEDT) on Sunday after a resident reported hearing gun shots.

At the scene, officers were told the shots were fired by two men in a blue sedan. There were no reports of injury or damage to property.

The vehicle is described as being a dark blue sedan similar to a Holden Commodore or Ford Falcon.

The car occupants are described as being of Mediterranean or Middle Eastern appearance, aged in their mid 20s, with a stocky build, and unshaven.