Tasmania Police have shot dead a knife-wielding man after reports he was threatening the public in Launceston’s CBD.

The “traumatic incident” unfolded on Tuesday morning after police received an emergency call about 10am.

The man, who was known to police, was allegedly threatening people at a nearby business.

“Upon police arrival, officers attempted to negotiate with the man, who was armed with a knife and making threats,” Assistant Commissioner Adrian Bodnar said.

When he ignored repeated directions to drop the large knife, police used capsicum spray.

Even after the spray was deployed, the man continued to advance towards police.

“A number of shots were fired by two attending police officers – with two shots hitting the armed man in the chest.

“The man was immediately provided with first aid at the scene and was taken to the Launceston General Hospital in a critical condition.

“He was pronounced deceased a short time later.”

Bodnar said another police officer at the scene received non-life-threatening injuries from a bullet wound.

He was also being treated at Launceston General Hospital.

“No other people were injured in the incident and there is no ongoing threat to the wider community,” Bodnar said.

Bodnar said the officers implemented their training, which involved shooting the “largest mass” to stop the threat, after doing their best to negotiate.

“As the threats continued towards our police officers they used a less-than-lethal option trying to diffuse the situation. For whatever reason that hasn’t worked,” he told reporters.

“They’ve (then) resulted in lethal force. Lethal force for a police officer is a very last option. This is not an outcome we want to see.”

A crime scene has been established, and St Johns Street between William and Cimitiere Streets and Cimitiere Street between Charles and St Johns Streets were closed until further notice.

As with any serious incident involving police, Bodnar said, a full professional standards investigation was underway.

Police were also notifying the man’s next of kin.

Bodnar said the investigation would include preparing a report for the coroner, who had been notified and was at the crime scene.

The Integrity Commission has also been notified, as is the normal process.

“This is a traumatic incident and a tragic outcome that no one wanted. Our thoughts are with everyone involved,” said Bodnar.

“It is an extremely difficult time for the officers involved and their families, and we have put support plans in place for them.

“Policing can be a challenging and dangerous profession, and we are ensuring the officers are being provided with wellbeing support.”

“Police would like to thank the local community for their assistance as we carry out our investigations. We appreciate their patience and understanding,” Bodnar said.

Anyone with information should contact Police on 131 444 or report anonymously to Crime Stoppers on 1800 333 000 or crimestopperstas.com.au