Armed man holding one person hostage in Australian city of Bunbury

A hostage situation was underway in the Western Australian city of Bunbury involving a man reportedly armed with explosives, media reports said on Thursday.

Police, ambulance and firefighters are at the scene near the corner of Koombana Drive, the main thoroughfare into thetown, and Blair Street.

The ABC Australia said a large sign has been erected at the scene, apparently carrying the demands of the hostage-taker, who has explosives strapped to his body.

They say they are aware of the identity of the man at the centre of police attention, but are not releasing further details at this time.

The Tactical Response Group has a team based about 170 kilometres from the city of Perth approaching the scene at the moment.

‘We have concerns for one person in the vicinity of this man, who we are trying to negotiate with, ‘ WA Police spokesman Sam Dinnison told AAP.

Mr Dinnison said it’s unclear what sparked the hostage situation.

It is believed that the man is in possession of explosive, however this information has not yet been confirmed.

The man looks to be talking on a mobile phone to police. Dog squad officers are also in attendance.

Police wearing bulletproof vests are laying on the ground about 30 metres from the hostage situation.