Police are hunting a gunman after a man was shot dead on an inner-Sydney street.

A major police operation was under way in Surry Hills on Friday night following reports of shots fired.

Officers arrived at Baptist St, near Cleveland St, about 8pm to find a man with a gunshot wound.

The man, believed to be in his 30s, was treated by paramedics but died at the scene.

Police also responded to reports of a car on fire in the nearby suburb of Kensington and arrived to find a Porsche well alight.

They believe the two incidents are linked.

Police urge anyone with information to come forward.

–AAP