Three shot at Australian industrial site in Sydney

A man was killed and two others were injured and taken to a hospital following a shooting at a signage business in Sydney's outskirts, Australian police said Monday.

It's believed a gunman thought to be in possession of an automatic rifle is inside a business in the area, with police negotiators on the scene.

Emergency services were called to the site at around 10.45AM (AEDT) on Monday.

Five gunshots were heard in the area, according to nearby businesses.

An employee at a nearby business told AAP that one person was dead.

"Police told us not to go near windows," the employee said.

Members of the public are advised to avoid the area.

Australians are still on alert following a lone gunman who took 17 hostages at a café in Sydney in December 2014.

Two hostages were killed along with the gunman during the 16-hour siege.