Police were called to reports of shots being fired in Sydney's south-west.

Officers set up a perimeter around the home in Burley Road, Horsley Park.

They were told shots were fired just before before 2pm.

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APolAir helicopter, Public Order and Riot Squad, Dog Unit, Tactical Operations Unit (TOU) were also summoned.

Two vehicles were stopped near the property and police spoke to seven people, with occupants made to lie on the floor by armed police.

A 47-year-old man was arrested at a house on the property and is assisting police.

Nobody was hurt.