Two Napier police officers and a local resident are in a critical but stable condition in Hawkes Bay Hospital.
All three men have had surgery for a range of internal injuries, and are in the hospital's intensive care unit.
Police say cordons are still in place around the Hospital Hill part of Napier Hill. Negotiations are continuing with a 51 year old offender.
Residents are asked to stay inside their homes. Students and teachers from schools in the area have been safely evacuated. People who are not able to return to their homes can go to the Napier Intermediate School where Civil Defence has set up a welfare centre.
Welfare support systems are in place for residents, and also for the families of the injured officers and civilian. Family ask through police that media not contact the victims' families and to respect their privacy at this time.
Gun shots have been fired throughout the afternoon which have been audible around the city. It is critical that people remain in their homes as a safety precaution.
Further information will be provided when it is available.
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Contacts:
Kris McGehan: 027 222 3638
Kaye Calder: 027 241 6305