Queensland police declared an emergency situation on Friday morning as they hunted a gunman who had allegedly threatened a woman during an altercation on the Sunshine Coast.

The 22-year-old gunman reportedly made the threats a Rosewood Street address in Caloundra West about 8am on Friday (AEST) before fleeing on foot.

Police declared the emergency for an area bounded by Queen Street, Bowman Road, the Esplanade and Edmund Street at 9.40am.

The emergency warning was revoked about 12.20pm, when police said the wanted man had been taken into custody.