A woman has been arrested during a shopping centre siege south of Wollongong.

NSW police are questioning the 27-year-old woman who was arrested on Monday morning outside the Warrawong Westfield, where officers are believed to be hunting two armed men.

"She is currently with police ... assisting them with their inquiries,'' a spokeswoman said.

Two gunmen are reported to be locked inside the cinema complex at the shopping centre, which is closed to staff and public.


A Nine Network reporter at Warrawong Westfield said the siege began after a security guard spotted two men and a woman in the complex about 6am (AEDT).

"The two security guards managed to grab a young woman who was with two other males and hold her and detain her, then rang the police,'' Nine's Damien Ryan told Macquarie Radio.

The security guards are said to have told police the two men were armed with rifles.

Police are focusing their search on the Hoyts cinemas, where they believe the two men are holed up.

SWAT teams are reported to be on the roof and roads surrounding Westfield have been blocked off.