Accused gunman Dezi Freeman remains on the run after two police officers were killed and a third was injured in a shooting on a rural property in north-east Victoria.

The incident unfolded at a home in Porepunkah in Victoria's alpine region, about 300 kilometres from Melbourne, when police went to execute a search warrant just after 10.30am.

Two officers, who were initially unaccounted for, died at the scene. The third has been rushed to hospital.

They have been identified as a 59-year-old detective and a 35-year-old senior constable.

Here is what we know about the incident so far.

What happened?

Ten police officers attended a rural property on Rayner Track, Porepunkah, just after 10.30am, Victoria Police confirmed in a statement.

9News understands the officers were executing a warrant for historical sex abuse allegations when they were fired upon.

"Two officers were fatally shot and a third was seriously injured after being shot in the lower body," a Victoria Police spokesperson said.

Chief Commissioner Mike Bush said the two officers were"murdered in cold blood" by a heavily-armed alleged gunman.

He told the media in an update tonight that Freeman was able to escape on foot and was seen fleeing into the bush after the incident.

Earlier reports claimed Freeman may have had family members with him, however Bush said this remained unconfirmed.

Bush said police were trying to locate Freeman's family.

An urgent call for assistance was made from the property about 10.55am.

The wounded police officer was airlifted to The Alfred Hospital in a stable condition, where he was undergoing emergency surgery.

No other officers had been physically injured, however they remained at the property.

Police from the Special Operations Group and Critical Incident Response Team also remained on scene.

"The suspect for this horrific event is still at large. We believe he is armed," Bush said.

"We have deployed every specialist resource into this area to locate him. It is our priority. Our priority is to arrest him to ensure that he's held to account for the actions, but also very much to bring safety and security to this community."

Detectives from the Homicide Squad will investigate the incident and attended the scene along with detectives from the Armed Crime Squad and Fugitive Squad.

"The Police Association Victoria is aware of a critical incident that has unfolded in northeastern Victoria impacting our members," a spokesperson said.

"We have sent critical incident support teams to the area to assist and support the impacted members, their families and colleagues."

A Porepunkah local told 9News she heard two or three gunshots ring out between 9.30 and 10.30am.

The woman said she thought the gunfire had come from deer hunters, but thought it was strange for people to be hunting in daylight.

What do we know about the accused gunman?

The accused gunman on the run has been identified as"sovereign citizen" Dezi Freeman.

Freeman allegedly fled into the surrounding bush, taking family members with him, after the incident.

Freeman still remains on the run more than seven hours after the ambush.

He is a self-described"sovereign citizen" who is known to police.

According to the Australian Federal Police, a sovereign citizen – also known as a SovCit – seeks to"disassociate from society and refuses to engage with societal requirements like paying tax".

Police believe he has left the property and at this time his whereabouts are unknown.

Police said he had at least several firearms on him.

Where is Porepunkah?

Porepunkah is located on the Great Alpine Road, at the foot of Mount Buffalo, about 300km north-east of Melbourne.

The remoteness of the town means police resources are currently limited.

It has a population of 1024, according to the 2021 Census.

The nearest town, Bright, is located 5km away.

Is the situation still active?

The gunman remains on the run.

It's believed the offender has left the property and at this time his whereabouts are unknown.

A significant search is actively under way to locate the man.

"We urge the public in and around the township of Porepunkah to remain indoors until further notice," Victoria Police said in a statement.

"We also ask people not to travel into the area."

Roadblocks have been established in and out of the town, meaning some locals are unable to return home.

What is the advice in the local area?

The town of Porepunkah has been placed into lockdown as the situation continues to play out.

Locals have been asked to stay indoors as the incident unfolds.

"Police are currently at a property in Porepunkah," Victoria Police said in a statement.

"This is still an active incident and we will provide more information when it's operationally safe to do so.

"We ask people to avoid the area."

Porepunkah Primary School has been put into lockdown.

The principal toldThe Age the children were all fine and watching movies to pass the time.

Local caravan park owner Andrea Siede said police directed guests to take the keys out of all vehicles, lock all doors and stay inside.

"They said, all your workers, put them somewhere safe...and you need to stay inside your property," Siede said,

"No family deserves to be going to work and not returning home."

One local told 9news.com.au Porepunkah is a"pretty quiet community".

He said several police cars were seen heading across the town.

Alpine Shire Council, the local council servicing Porepunkah, said in a statement it was closing all council facilities"immediately".

"This includes all Transfer Stations, Libraries and Visitor Information Centres and Depots across the Shire, Council's Customer Service Centre in Bright, and Bright Sports Centre," the statement reads.

"Tonight's Ordinary Council Meeting has also been postponed, and will be rescheduled for two weeks' time.

"Further details will be provided at a later date. We thank you for your patience and understanding. We'll update the community when our services resume."

Victoria Premier Jacinta Allan spoke about the shooting during Question Time in Victorian parliament.

Allan urged people to stay away from the scene as police do their job.

"I do ask the Victorian community, particularly those in that beautiful part of the north-east of our state, to follow the advice of Victoria Police and avoid the area," she said.

Prime Minister Anthony Albanese said he was"very concerned" for the police officers involved.

"Our thoughts are with the police for the work they do, each and every day. The men and women who wear our uniform, wear the uniform of the police take risks each and every day," the PM told media in Canberra.

"The Victorian Police Commissioner will be providing updates during the afternoon as more facts that are able to be released become clear."

Australian Federal Police Commissioner Reece Kershaw joined Albanese and said there were "grave fears" for the officers as the incident unfolds.

"Just from the police blue family, the wider family across Australia, and overseas, our thoughts and prayers are with Victoria Police right now," Kershaw said.

"And we hope that they are all safe and well, however, we're hearing there are some grave concerns for some of those police officers and our hearts go out to the community."

Victoria's Opposition Leader Brad Battin told reporters at parliament that events like this"impact each and every police officer across Victoria and across Australia".

"We're seeing news, tragic news is happening up in the north of Victoria, and we want to send our thoughts and our strength out to Victoria police members who are hearing some of the news coming through at the moment," Battin said.

"We know that when Victoria police members get out of bed every day and go to work, they go to work with risk.

"Each and every day, Victoria police members go out in the face of danger.