A critical incident is under investigation in Nowra after a man was fatally shot by police on Junction Street this afternoon. 

Police were called to attend a medical centre after a patient was seen with a firearm on the premises just before 1pm this afternoon.

The man exited the building nearly two hours later, still armed, to confront the officers, where he was then shot. He received medical assistance immediately by NSW Ambulance paramedics but died at the scene. He is yet to be formally identified.

A critical incident team from the State Crime Command Homicide Squad will investigate the incident further.