Police are also advising members of the public that motorists are now being allowed through the area, however they should still expect some delays.
Police are aware the road is a main thoroughfare, and with it nearing the afternoon peak time, but are asking motorists to use alternate routes if possible.
Police have said they will have a media stand up this afternoon, but wouldn't be answering any specific questions until then.
EARLIER:
Police have confirmed a man has been shot by an officer on Te Ngae Rd in Rotorua.
A woman at the scene said she saw a man running down the road armed with a weapon, though could not tell what kind.
"Police were heading towards him, I didn't see him get shot, but heard two gun shots sound out in the air, then saw the guy hit the ground."
She said it was "terrifying" and "not something you want to see".
Another witness said she heard police ask the man to "get on the ground" and when he didn't, he was shot.
"It was really loud and a bit of a shock, this doesn't happen very often - not here anyway."
Police have cordoned off Te Ngae Rd between Vaughan and Allen Mills Rds, and are asking members of the public to avoid the area.
As this is an evolving situation, police will release further information as it becomes available.
PHOTO/BEN FRASER EARLIER:
A reporter at the scene said two ambulances arrived and a man was taken away in one of them.
A police spokeswomen said staff were responding to the incident on Te Ngae Rd.
The reporter said there were about 15 police officers and the man was lying on the ground being treated by police before the ambulance arrived.
She said the person didn't seem to be moving.
"Traffic is at a stand still and is backing up fast," she said.
EARLIER
Shots have been fired in Te Ngae Rd, near the Tarawera roundabout.
A reporter at the scene said a police officer was being comforted.
She said there were about eight police cars in the area with officers directing the traffic around the roundabout.
The reporter said a man was on the ground in the median strip and police had blocked off that section of road.
She said no ambulances had arrived at the scene yet.
Witness Tysone Stephens said he had heard gunshots, but had not seen any evidence of somebody being hit.
More to come.