A man has been shot dead by Queensland Police after a 12-hour siege near Palm Cove on Sunday afternoon.

Chief Superintendent Brian Huxley said the man was shot in waist-deep water at Tomatis Creek, off the Captain Cook Highway north of Cairns, after he allegedly raised a gun towards police.

Superintendent Huxley said the man was critically injured about 3.15pm when police returned fire and was pronounced dead at the scene.

Earlier, police had declared an emergency in an area between Holloways Beach and Yorkeys Knob after being called to a break-in at a telecommunications building off the Captain Cook Highway about 4.30am.

Specialist police and a helicopter then tracked a man armed with a gun, who it was alleged deliberately collided with a police vehicle attending the incident.

The man allegedly rammed multiple police vehicles with his car. Photo: ABC News/Marian Faa

A police statement said officers immediately requested further assistance and multiple crews responded.

A short time later at Smithfield the man allegedly deliberately veered towards a 26-year-old constable on the side of the road.

The officer suffered a suspected broken wrist and other non-life-threatening injuries.

Police said the man’s vehicle stopped on the Captain Cook Highway at Yorkeys Knob, where he allegedly set it on fire.

When police approached, the man allegedly produced a firearm and discharged a shot at officers before running from his vehicle.

Police then established a cordon around an area to the west of the Captain Cook Highway to contain the man.

ABC reports that Superintendent Huxley said a special emergency response team in a boat reached the man.

“As a result of attempts to apprehend him, they have been threatened and they have returned fire,” Superintendent Huxley said.

The man was critically injured and pronounced dead at the scene.

“Every attempt to try and save this man’s life has failed,” Superintendent Huxley said.

“This is a tragic set of circumstances.”

The matter is under investigation by Ethical Standards Command on behalf of the State Coroner, subject to oversight by the Crime and Corruption Commission.

-with ABC