A man is engaged in a stand-off with police following a fatal shooting in a small Western Australian town on Thursday morning.

Police said on Thursday afternoon they had located 25-year-old Lachlan Bowles in a rural area outside of the wheatbelt town of Kellerberrin, following a day-long manhunt.

“We are attempting to negotiate a peaceful resolution. However, the situation is still unfolding,” they said.

“Residents in the area are advised to remain alert.

“It has been confirmed that one man is now deceased and Homicide Squad are investigating.”

The afternoon’s developments came after Western Australia police abruptly postponed a media briefing about the hunt for the man believed responsible the morning shooting at Moylan Grain Silos on Mather Road, Kelleberrin.

Police had been due to brief the media about 1pm Thursday (local time). That was delayed just minutes before it had been due to begin.

Meanwhile, a Perth rescue helicopter has also been dispatched to Kelleberrin, a town of fewer than 1000 residents about 200 kilometres east of Perth.

It followed a major manhunt in the small town and surrounding area after the morning shooting.

Police released a photo of Mr Bowles, who reportedly works at the grain silo business, saying he had not been seen since early on Thursday.

Mr Bowles was described as about 175 centimetres tall, of slim build with brown hair and blue eyes.

Police believe he was driving a grey 2007 Holden Commodore with the registration 1CRB 764 at one point. People were advised not to approach him or the car.

Tweet from @WA_Police

A camouflage-clad Mr Bowles is alleged to have shot dead a Moylan Grain Silos’ co-worker in his 30s earlier on Thursday.

“[A witness] said that he heard three bangs. He has then walked out and seen the suspect standing over a man laying on the ground, and then he has seen the suspect fire two more rounds into the man’s head,” the ABC reported.

The distressed witness, who did not want his name used, told the ABC he saw a co-worker lying on the ground. He described the incident as “shocking”, and said the shooter was a “silent type” who was “family-oriented.”

“I don’t know what’s the issue about,” he said.

Police initially said one person had been injured, and had been taken to hospital in an ambulance.

They locked down Kelleberrin after receiving reports of a firearm incident about 8.40am.

“A man is believed to have attended a grain silo and discharged a firearm before fleeing the area in a vehicle,” they tweeted.

“Officers are currently confirming the make and model … A large number of police resources have been deployed to the wheatbelt area,” they said.

Anyone with any information was urged to call triple-zero.