UPDATED: Cordons have been lifted in Whakatane after Bay of Plenty Police responded to reports of an agitated man with a loaded rifle.

Armed police were called to an address on Salonika Street about 10am and quickly set up cordons as they assessed the situation.

Armed police swarmed an address in Whakatane this morning.

Senior Sergeant Yvonne Parker says armed police cordoned off the area and advised local schools and day cares to keep children inside.

'A short time later police stopped a vehicle leaving the address and located a firearm in his vehicle.

'The driver has been arrested and is assisting police with their inquiries.”

Yvonne says all cordons have now been removed and the schools and day care centres advised of the resolution.

Earlier:

Bay of Plenty Police have arrested a man following an armed callout in Whakatane this morning.

Armed police swooped on an address in King Street following reports of a man with a loaded rifle in an agitated state about 10am.

Police Northern Communications shift commander Senior Sergeant Duncan Hall says police now have the man contained.

'We are conducting a search of the address before releasing the cordons in place.”

Cordons around King Street were put in place stopping the traffic as police dealt with the armed incident.

The cordons will be stood down as soon as police have finished their search of the address.

Earlier:

Armed police are cordoning off King Street in Whakatane as they respond to reports of an armed offender in a house.

The man is reported to have a loaded rifle in his possession.

Police have cordons in place around King Street and all traffic is being stopped in the area.

St Joseph's Catholic School and Whakatane High School are also in lockdown as police respond to the incident.

A police northern communications spokesperson confirmed police are dealing with an armed incident but did not have any other information.