The Independent Police Conduct Authority and Coroner will begin their investigations after a man was shot dead by police following a 14 hour hostage situation in Tauranga.

Bay of Plenty District Commander Superintendent Andy McGregor says the man was shot dead by officers in Bellevue on Sunday afternoon after officers were left with no other option.

This was after police were called to the scene following reports a man had threatened a woman with a knife around midnight on Saturday.

The woman had managed to escape the house, making her way to a neighbour's house where she called Police at around 12.25am.

On arrival, police were informed about concerns for the three children still in the house, aged 11, six and four years old.

Due to those concerns, officers entered the property, where they found the man holding a second weapon - a large machete to the throat of one of the children.

'He threatened to harm that child if the police did not leave the address.”

The man retreated into a wardrobe with that child and a second child, and police left managing to take the third child with them.

The Police Negotiation Team and Armed Offenders Squad then arrived at the property and worked to bring the situation to a safe and peaceful conclusion.

'The Police Negotiating Team tried everything to resolve the situation peacefully. They also use psychologists, and look at the profile of the offender,” says Andy.

Bay of Plenty District Commander Superintendent Andy McGregor.

"The decision was made that we were not going to get any further with the offender, and there were grave concerns for the children.”

The Police made the decision to enter the address, which they did, just before 3pm.

'On entry at the address the offender had a knife at one of the child's chest. He was then shot. He died shortly after.

'Our feelings are with the family at this moment. This is a very traumatic event for them and it's something that no one should ever have to go through, and we're offering them support.

'This was also very traumatic for our own staff, but in the end, we've got two children who are out safely.”

Police Minister Stuart Nash has offered his sympathies to the family of the man shot by police in Tauranga.

'It is appropriate that independent external agencies, including the IPCA and Coroner, will examine the circumstances of the death, and I will not comment on the details of today's shooting,” says Stuart.

'My sympathies and condolences go out to the man's family. I also recognise how frightening the last few hours have been for the woman and children caught up in this traumatic incident. They will receive support from police to help them with the days, weeks and months ahead.

'It's important to also acknowledge the distressing impact this shooting will have on the officers involved. We trust police to make the best decisions in extreme situations. Police put themselves in harm's way in order to keep the public safe. This will stay with them.

'I encourage the officers and other police staff to take advantage of all the support and assistance available to them to help deal with the events.”