A man has been shot dead after turning a gun on police on a rural property on the NSW Central Coast, with police hunting another man.

Nearby Warnervale Public School remained in lockdown into Thursday afternoon after the morning’s shooting at a semi-rural property near Hamlyn Terrace.

Police also warned the public to stay inside as a second man – who is potentially armed – is believed to be on the run.

Assistant Commissioner Max Mitchell said the ordeal began after a motor vehicle was stolen.

Police pursued the stolen LandCruiser until it rammed into another vehicle. It was tracked to the semi-rural property in the Wyong area shortly after 9am.

There, police found a man trying to break into a garage.

One of the two men then threatened the officers with a firearm and was shot.

Assistant Commissioner Max Mitchell praised police for their courage and professionalism.

“Having a double-barrelled firearm pointed at you. Fear of life – there can be no more strenuous position for a police officer to be placed in,” Mr Mitchell said in Wyong.

“They have my full support.”

Armed tactical police officers crouch behind a car at the property. Photo: ABC News

Police have not yet identified the man who died at the scene.

They have extensive resources involved in the hunt for the wanted man with local police supported by multiple specialists including Tactical Operations support officers and Polair.

“These are experts and the community is safe,” Mr Mitchell said.

An investigation has been launched and a report will be prepared for the NSW Coroner.

Earlier, the Police Association of NSW said it was aware of the “critical incident” and had representatives on the scene supporting its members, who were safe.

-with AAP