A person has been shot dead by police after opening fire on the state’s Central Coast in a developing situation.

A stolen vehicle was tracked through the Tuggerah Lakes area during a police pursuit, where it was then set on fire.

The offenders were cornered on Minnesota Road in Hamlyn Terrace, Warnervale.

A second person managed to escape. It’s not known if that person is armed.

A listener has reported police have blocked the road in both directions. Two helicopters are circling, and police are wearing body armour.

Police have advised residents of the area to stay indoors until the police operation has concluded.

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Nine News reporter Grace Fitzgibbons is on the scene, and told Deborah Knight police have locked down Warnervale Public School.

“Students and staff are being told to stay inside as a precaution.”

The second offender is believed to be sheltering inside a house.

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Warnervale resident Ryan Kershaw heard the shooting, and called in to describe the unfolding situation.

“Right now they’ve got someone hostage in the house, I’m pretty sure. I heard them yelling on the megaphone,” he told Deborah.

“I think they’re going to storm the house.”

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