Three men shot during Sydney factory siege

A gunman is believed to be in a stand-off with police at a Sydney factory where a man was shot dead and two others injured.

Police say the "delicate" operation in the industrial suburb of Ingleburn in the city's southwest is ongoing.

It is unknown whether the gunman is holding hostages.

The two injured men were transported to Liverpool Hospital and were in a stable condition, staff told the BBC.

One of the men underwent emergency surgery, while the second suffered superficial wounds to his lower body.

Reports from media at the scene said the man was believed to be using an automatic rifle.

Photographs show heavily armed police surrounding the Inline National Signage factory, and what appears to be a body underneath a white sheet on the sidewalk.

A man was arrested at the scene, but police said he was detained for "hindering" the investigation.