UPDATED 9.35PM: A man with a gun who confronted police has been shot and killed in Thames.

Police were called to a situation in the Thames region around midday. A firearm was present, the Armed Offenders Squad and the Police Negotiation Team were deployed to the address.

The man confronted police with a firearm and was subsequently shot, says Detective Inspector Chris Page, Waikato District Manager of Criminal Investigations.

Police immediately administered first aid, but the man died a short time later in Thames Hospital.

Police are working with the family of the dead man and at this stage his name is not able to be released.

Police have commenced an investigation into the shooting and advised the coroner.

Police are also taking steps to advise the Independent Police Conduct Authority who are expected to undertake their own investigation.

'This is a tragic incident and we extend our sincere sympathies to the family of the man involved," says Detective Inspector Page.

"There will be a thorough investigation into what took place, which will include examining the actions of police staff and the circumstances surrounding the incident.”

No further updates are expected say police, until Sunday afternoon.

UPDATED 5.56PM: Police have arrested a man they were looking for in relation to an incident in Thames earlier today.

State Highway 25, at Kopu, is now open after police closed the section of highway as they searched for the man.

"No risk to any other persons exists and the local community can safely continue normal activities," says Police Northern Communications Inspector Kerry Watson.

Police are expected to release more information about the situation soon.

Earlier:

There are unconfirmed reports of a gunman on the lose in Thames area.

Police have closed a section of State Highway 25 at Kopu as they "investigate an incident".

"Road closure SH25 Thames Police currently have a small portion of SH25 closed between the interection of both exits of Kopu Road onto the highway," says Northern Communications Inspector Kerry Watson.

"Local police supported by the Waikato Armed offenders Squad are searching a local address in relation to an earlier incident at Thames today.

"They are searching for a person of interest. No further information in relation to this matter can be released at this time."

Coromandel FM is reporting a gunman is on the lose and police are present.

"Residents are advised to stay at home until further notice," says a post on Coromandel FM's Facebook page.