Regional Police say they have a 28-year-old man in custody after responding to reports of possible shots fired inside a room at the Highlands Motel in North Sydney last night.
Police say they got called to the Motel just after 9:00 to reports of what sounded like shots from a gun.
They say officers evacuated the building, while members of the Emergency Response Team and Crisis Negotiators arrived to help.
Police say the man surrendered to officers at around 11:00.
They say their investigation continues.