Mr Colville said Masterton police and Masterton District Council dog rangers were alerted to the attack and arrived at the site soon afterward.
He said police officers shot dead the two dogs after confirming the pair had attacked the sheep.
A fourth sheep was found to also have received serious injuries in the attack and was also shot dead.
A dog ranger at the scene recognised the two dogs, Mr Colville said, and later in the morning had contacted the owner, who said he had been searching for his dogs overnight.
The owner agreed to pay $400 reparation for the loss of the four sheep, which belonged to the Master Roads & Services social club.