Man killed in siege hid in neighbour's shed for hours before firing shots, police say

Police allege a man they shot dead in a siege in Victoria's Central Goldfields overnight hid in a neighbour's shed for several hours before opening fire on them.

Police allege a man they shot dead in a siege in Victoria's Central Goldfields overnight hid in a neighbour's shed for several hours before opening fire on them.

The stand-off was sparked by neighbours' report a man had fired a gun on a rural road in the small town of Daisy Hill, about 50 kilometres north off Ballarat, about 3pm yesterday.

One neighbour told police he had been confronted by a man who had shot at him on Menzies Drive, but narrowly missed.

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The stand-off was sparked by reports a man had fired a gun in Daisy Hill, about 50 kilometres north off Ballarat, about 3pm yesterday.

When police arrived, their attempts to negotiate with the 39-year-old man inside a neighbour's shed were unsuccessful and an hours-long siege ensued.

The critical incident response team, special operations group and dog squad were called in to help.

"The man hid inside the shed when police attended... making threats to shoot police and also indicating he had a knife and a bomb/explosives on him," Western Region Assistant Commissioner Mick Grainger said.

"We don't believe the people who owned the shed had any involvement, nor did they know that [he] was in the shed."

Western Region Assistant Commissioner Mick Grainger.

Around 10pm, seven hours after police were first called to the property, Victoria Police claim the man exited the shed, produced a firearm and fired two shots at police.

Police returned fire and the man died at the scene.

Homicide squad detectives will investigate the shooting, with oversight from the professional standards command.

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The stand-off was sparked by reports a man had fired a gun in Daisy Hill, about 50 kilometres north off Ballarat, about 3pm yesterday.

"No police or other members of the community were injured in that exchange," Grainger said.

"We understand it's incredibly sad for everyone involved in this - this is certainly something that no police officer wants to be involved in when they're at work."

Anyone with information contact Crime Stoppers on 1800 333 000 or online.

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