Armed police are on the outskirts of Te Anau following a "fleeing driver" incident this morning.

Police have confirmed nothing further than that but armed officers have been seen in the vicinity of Kakapo Road, at Tutoko Lane and also Wetlands Road.

A local resident said armed police were positioned near his property searching for somebody but he had not seen anyone in the area.

The New Zealand Transport Agency has just advised that, due to a Police incident, State Highway 94 is closed between the intersections with Sandy Brown Road and Kakapo Road.

A Kakapo Road resident said Police had phoned to tell them to lock their cars and doors and not go outside.

A Wetlands Road resident said they had also been told to stay indoors. A helicopter was circling overhead, and they could see what appeared to be armed police on top of a hill.