A man has been fatally shot by police in Waikato this afternoon.

At 12.30pm, police conducted a vehicle stop on Ulster Street in Hamilton City after identifying the driver as a person of interest. 

The driver presented a firearm to police and then fled, driving erratically and at high speed, says a police spokesperson.

"The offender then took a member of the public’s vehicle and continued to flee.

"Police initiated a pursuit and deployed road spikes in an effort to stop the vehicle, however, this was not successful."

A short time later, the vehicle crashed on a rural road in the Matamata-Piako area.

Police say the driver fled on foot and entered a private residence where he was not known to the occupants.

"Police arrived to find a parent and child were being threatened by the armed offender.

"After being confronted by police, the man was shot and initially critically injured.

"Officers immediately provided medical attention, however, he died a short time later.

"No members of the public or Police staff were injured."

Police say there will be an increased police presence in the area in the coming days as officers conduct multiple scene examinations and work to establish a full picture of what has occurred.

Police will also undertake a formal identification process in relation to the deceased and his family will be provided with support.

"The parent and child are being supported by Victim Support and local police, along with other members of the public who were directly affected," says a police spokesperson.

"Today’s events will also have a huge impact on the officers involved, and we will be providing them with ongoing support.

"The Independent Police Conduct Authority will be notified and a Critical Incident Investigation is underway."