A man armed with a gun has been shot and killed by police during a tense stand-off in an Ipswich suburb.

Queensland Police declared an emergency situation in One Mile, southwest of Brisbane, about 11.15am on Sunday after reports of a man armed with a firearm.

Residents were warned to stay inside their homes as police attempted to negotiate with the gunman before multiple shots were fired.

Initial reports suggest the gunman was in the yard and approached police while holding the weapon.

Police have declared Ernest and Woodford streets crime scenes and public access is restricted, with an update expected later on Sunday.

-AAP