A major police operation has been under way at Bondi Beach after NSW Police confirmed officers were responding to a developing incident and urged the public to avoid the area.

Sky News reports there are multiple casualties.

There was a Jewish Chanukkah event being held at the time of the shooting.

NSW Police said police were responding at Bondi Beach and asked anyone at the scene to take shelter, adding that officers were on scene and more information would be provided when it came to hand.

In a subsequent update, NSW Police said two people were in police custody at Bondi Beach, however the police operation was ongoing and people were still being urged to avoid the area.

“Please obey ALL police directions. Do not cross police lines,” police said.

Police also warned against speculation, saying there had been no reports of any incident at Dover Heights and asked people not to share unconfirmed rumours.

Residents said police vehicles were seen heading toward the beach area shortly after 6.40pm, with large numbers of people moving away from the foreshore as officers established cordons.

ABC reporter Sean Tarek Goodwin is on the scene at Bondi.

He says paramedics and bystanders are treating a number of injured people on the grass at North Bondi.

People are being loaded into ambulances on stretchers, he says.

He’s also spotted police boats in the bay and helicopters circling overhead.

“I can see emotional scenes, people hugging each other,” he says.