A police stand-off with a gunman who killed a long-time workmate in Western Australia’s wheatbelt has ended with the wanted shooter turning the weapon on himself.

Lachlan Bowles, 25, went on the run on Thursday after fatally shooting local father Terry Czernowski about 8.30am at a grain silo in the town of Kellerberrin, 205 kilometres east of Perth.

Police cornered Bowles hours later, about 2.10pm, in a green field north of the town, where they attempted to “negotiate a peaceful resolution”.

Local media report Bowles, dressed in camouflage, had a swastika wrapped around his arm and was waving a Nazi flag during the tense two-hour siege.

The lengthy stand-off ended when Bowles reportedly shot himself in the head. Police confirmed about 4.30pm the day’s frightening drama had ended with the wanted man suffering a “self-inflicted gunshot wound”.

“I can say that police have been negotiating with the 25-year-old man for several hours. It’s obviously a tragic outcome for all involved,” Regional WA Commander Rod Wilde said.

Bowles had earlier shot dead Mr Czernowski, a father of one, at the Moylan Grain Silos in Kellerberrin. Both men had worked together for several years.

Police would not speculate on a motive but Commander Wilde said: “What I can say is we believe it was related to the two parties”.

The “shocking” shooting triggered a lockdown of the quiet rural town, of fewer than 1000 residents, when Bowles went on the run. He first fled in a car before ditching it and escaping on foot.

WA police issued an active shooter alert, warning the public to remain indoors as a police manhunt got under way.

Bowles was armed with at least one high-powered rifle and a handgun, The West Australian reports.

Police found him at a rural property about 2pm after he allegedly shot at a ute driven by a local farmer who had stopped to give him a lift.

After nearly five terrifying hours in which heavily armed police and armoured vehicles swarmed the region, police swooped on the property, about 20 kilometres north of Kellerberrin.

The West Australian reports Bowles was known in the town as an avid shooter and a member of the local gun club.

Tony Downs, from the Kellerberrin Pie Shop and Bakery, told 9NEWS Bowles was a quiet and softly spoken man who kept to himself.

“The gentleman … actually two years ago got an award from the community on Australia Day for being a volunteer ambulance driver,” he said.

Shire of Kellerberrin chief executive Raymond Griffiths said Bowles and his alleged victim were both locals and the small community was devastated by the events.

“Kellerberrin is a tight-knit community … We are all in shock,” he said.

“Our focus in the coming days will be providing any support the families that have been impacted might need.”

Mr Griffiths thanked police for their “quick response” and asked for the privacy of the victim’s family and the community to be respected.

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