One man has been killed at an Australian cafe in Bankstown, New South Wales after being shot by a gunman who is still at large.

Police are at the scene of the fatal shooting at Happy Cup Cafe.

The man was shot at 3.40pm (local time) and police said paramedics responded at Bankstown City Plaza, Daily Telegraph Australia reports.

People gather after a shooting at the Happy Cup Cafe in Bankstown. Photo / News Corp Australia
People gather after a shooting at the Happy Cup Cafe in Bankstown. Photo / News Corp Australia

Police have confirmed that the man, aged in his 60s, died from gunshot wounds.

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Rima was in a nearby store when she heard four "clear" shots.

"I was inside, I heard bang bang bang bang. I heard a lady scream then saw people running," she said.

"A couple of minutes later the cops rocked up an barricaded everyone."

Phoung Lu the co-owner of a nearby bakery said she saw screaming and a man chasing another man.

"When I heard a lot of people screaming. Children and women were screaming. They were running away.

Multiple gun shots were heard outside the Happy Cup Cafe in Bankstown. Photo / News Corp Australia
Multiple gun shots were heard outside the Happy Cup Cafe in Bankstown. Photo / News Corp Australia

"I saw a few men were running toward a walkway and a man in green was chasing another man and someone called out: 'They are shooting! They are shooting!'.

"I saw a man on the floor with a lot of blood.

"There was a lady doing CPR.

"It is very scary, last year there was a stabbing and a shooting at the station, three crimes in a year.

"Two police came before the ambulance."

Mazda Kallouf and Zakaeria Jaroudi both saw the man lying on the ground as paramedics tried to carry out CPR.

"We saw the body and people trying to carry out CPR," Mr Kallouf said.

Aerial footage of the scene where multiple gun shots were heard outside the Happy Cup Cafe in Bankstown. Photo / Channel 7
Aerial footage of the scene where multiple gun shots were heard outside the Happy Cup Cafe in Bankstown. Photo / Channel 7

Zakeaeria Jaroud said he saw the shocking incident unfold.

"I've seen blood, they shot him four times in the stomach.

"They sound like fireworks, I heard four shots.

"A young girl tried giving the guy CPR.

"The shooter was wearing a black shirt and a grey jacket.

"I couldn't see the victim properly because everyone was in front of him.

"I saw the shooter run away.

Officers from Bankstown Local Area Command, with the assistance of detectives from State Crime Command's Homicide Squad, will investigate the incident.