Two men have been arrested after one was allegedly seen carrying a fake gun in Sydney’s busy Entertainment Quarter, sparking widespread chaos.

NSW Police were called to Moore Park, in Sydney’s inner-east, shortly before 5pm on Monday following reports of an armed man.

It’s alleged he had a fake firearm and wore a bullet-proof vest decorated with an American flag, the 9News reported.

Another man was pictured barefoot as he was bundled into the back of a police car.

It’s understood one of the men was walking in and out and restaurants with the fake weapon taped to his chest.

Several witnesses called triple-zero, triggering the large police response. 

NSW Police confirmed two men were arrested at 5.10pm.

‘The public are urged to avoid the area,’ it said in a statement.

NSW Police have arrested two people after a man was alleged seen carrying a fake gun in Moore Park

One of the men (above) was seen wearing body armour featuring an American flag 

Witnesses claimed the man had taped the fake weapon (above) to his chest

Police arrested two people in Moore Park Entertainment Quarter about 5pm

‘There is no ongoing threat to public safety.

‘No further information is available at this time. Updates will be provided here as they become available.’

Up to 20 police vehicles and tactical operation teams attended the scene.

Witnesses claimed the man with the fake firearm was cornered by officers outside an Oporto.

‘My friend saw out of the corner of his eye a man coming forward,’ one woman recalled.

‘We saw a gun on his chest but we were like, “Is he wearing a costume? Is it real?” It looked like a pistol.

‘It was really scary. I’ve never seen something like that happen in real life, so it was terrifying.’ 

More to come…