A man who was tasered then shot by police in Rotorua this week was on electronically-monitored bail, the Corrections Departments says.

"Corrections can confirm that the man who was shot by police in Rotorua yesterday was not on home detention," a Corrections spokesperson told Newshub.

"Corrections is not managing him on any sentence."

The wounded man was flown by rescue helicopter to Hamilton on last night where he remains in the intensive care unit.

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The shooting happened on Te Ngae Rd, Rotorua, near the intersection of Marino Rd and Tarawera Rd.

Witnesses have described seeing police chase the man through a busy intersection and yelling at him to stop before shooting at him at least twice.

Paramedics and police gave the man first aid at the scene and he was taken to Rotorua Hospital in a serious condition.

Bay of Plenty District Commander Superintendent Andy McGregor said the man shot was known to police, lived locally and was believed to be under the influence of "a substance", possibly methamphetamine.

Police Tasered him three times and used pepper spray, but could not subdue him, said McGregor.

It is the second police shooting in New Zealand this week, after police shot and killed Nick Marshall, 36, in Hamilton on Tuesday night.