A street in the exclusive suburb of Potts Point remains closed after two women were injured inside their own apartment block by a stranger.
An armed man has been fatally shot by police after he allegedly broke into a unit block and attacked two women in what police believe was a random attack in the Sydney suburb of Potts Point this morning.
Police were called to a unit complex on St Neot Avenue about 10.50am following reports that a man armed with a knife had broken into the building.
Officers say when the man was confronted, he lunged at them with a knife, and a Taser was fired at him.
LIVE COVERAGE: Trump says the 'big wave' is yet to come in war with Iran
Police said the Taser was "ineffective", and a single round was fired at the man. He was later pronounced dead.
Neighbour Alex Dobelle told 9News he witnessed the entire ordeal.
"I was sitting by the pool and could hear a woman screaming for help.
"We could hear a lot of police cars coming down."
It is believed the man barricaded himself inside one of the apartments during the 10-minute standoff with police.
The incident came to an end after the man attempted to jump out of the window of one of the units.
READ MORE: Cyclone threat puts northern Australia on high alert
"The way that the lady was screaming for help, it sounded like he may have just come into the house, and he surprised this woman," Dobelle said.
"Then [the police] said, 'Get the f--- back in the house'.
"Then I heard Taser shots, and then they've dragged him away and then next minute I hear some gunshots."
Assistant Commissioner Peter McKenna said police believe the women, aged 48 and 56, were from two different apartments.
Police do not believe either woman knew the man.
"Both those females have head and facial injuries," he said.
"Both have been taken to hospital, one with more significant injuries than the other, but both are believed not to be life-threatening."
One of the women had injuries suspected to be from a stabbing, while the other suffered blunt force trauma.
Both suffered wounds to their heads and faces and have been taken to St Vincent's Hospital in a stable condition.
READ MORE: New pictures reveal attack at crucial nuclear facility
McKenna said the responding officers were "pretty traumatised" following the incident.
"They don't come to work to be confronted by this type of thing or to take a life.
"That's the last thing we want to do.
"We will thoroughly investigate this and get to the bottom of why and how [the shooting] occurred."
A critical incident has been declared.
NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.
- Download the 9NEWS App here via Apple and Google Play
- Make 9News your preferred source on Google by ticking this box here
- Sign up to our breaking newsletter here
Mass graves and huge crowds as Iran mourns '168 kids killed by US-Israel strike'
Widow remembers husband killed in alleged hit-run
Innocent young family mistakenly targeted in home invasion
'Extremely dangerous': Explosions spark emergency evacuation warning in Geelong
Ass it happened: Israel says it has struck Hezbollah 'centre of gravity'
Fumbling firebombers almost set themselves alight in arson attack
Jackie O exits top-rating breakfast show, Kyle Sandilands suspended for 'serious misconduct'
Conservative commentators lash Donald Trump's decision to attack Iran
The Australian employers where the gender pay gap is widening
The way you watch TV is about to change — again
What are Victoria's proposed work from home laws?
'Tax on households' coming for Aussies due to Iran war
'No, we're not': How Australia is responding to the escalating conflict
Mysterious 'glowing orange orbs' seen across parts of regional NSW
Fierce red rash spotted on Trump's neck
Diners flee Dubai restaurant after mistaking Ramadan cannon for bomb blast
Three US fighter jets accidentally shot down by 'friendly fire'
