A man has died after being shot at a unit in the inner Newcastle suburb of Cooks Hill.
Emergency crews were called to the apartment block at Darby Street shortly before 1:00pm.
When police arrived at the unit they found a man lying in the lounge room of a unit with a gunshot wound to the chest.
The man was treated for the wound but died at the scene.
Detective Superintendent Wayne Humphrey, the Local Area Commander, said police were searching for two people seen running from the unit block.
"A male and a female, the descriptions are varying," he said.
"So it's important that if anyone saw a male and a female – a male with blood on his face – running away from Darby Street near the corner of Parkway Avenue, that they contact Crime Stoppers or Newcastle Police as soon as possible and give us that information."
'Nervous to sleep here'
A woman who lives in the apartment block told the ABC she was badly shaken by the incident.
"I'm nervous to sleep here tonight," she said.
"We do have things happen [in the building], but never a shooting."
She said residents had to wait outside while police investigated.
"We can't get in," she said.