A shooting emergency is unfolding at Bondi Beach with witness video showing two men with heavy rifles and police urging the public to stay away from the area. 

NSW Police have confirmed to Daily Mail shots have been fired at Bondi Beach and urged the public to stay away from the area.

Witnesses said two males stepped out of a vehicle on Campbell Parade, near Bondi Pavilion, and opened fire about 6.40pm on Sunday. Witnesses reported hearing more than 30 shots.

There were large crowds at Bondi on Sunday night - including children - for a festival celebrating the Jewish holiday, Hanukkah - also known as Chanukah.

The event, Chanukah by the Sea, was advertised as a night of family fun.

'Police are responding to a developing incident at Bondi Beach and are urging the public to AVOID the area,' NSW Police said in a statement.

'Anyone at the scene should take shelter. 

'Police are on scene and more information will be provided when it comes to hand.'

Footage from the scene showed two people in black firing near the beach. 

It's understood several shots were fired from high-powered firearms. 

Witnesses claimed multiple people were injured at the scene and there are unconfirmed reports of multiple fatalities.

One witness told Daily Mail: 'These men pulled over their car put a black flag with an emblem on the windshield then walked over the footbridge and started firing.' 

The beach was crowded with thousands of tourists and locals at the end of a 30C summer day.

A spokesperson for Prime Minister Anthony Albanese said: 'We are aware of an active security situation in Bondi. 

'We urge people in the vicinity to follow information from NSW Police.'

It's understood two men have been arrested.

Police also confirmed there was no incident at Dover Heights, where a similar Chanukah event was expected to be held.

'Please do NOT share unconfirmed rumours,' it said. 

More to come...