NSW Police have established a crime scene in Queen Street after emergency services were called to the area about 8pm, following reports of a gunshot.

The incident happened at a flat in the western end of Queen Street, off Mitchell St, just metres from the main shopping strip.

It's believed the man, understood to be younger, was known to the woman.

A neighbour told the Newcastle Herald on Wednesday morning that he heard a loud noise, believed to be the gunshot, about 7.50pm.

The incident happened on the ground floor of a house that has been converted to a block of flats.

Another neighbour said the woman's daughter had recently moved in with her. She described the victim as friendly who always waved.

A distraught woman could be seen outside the house talking with police on Wednesday night and several other people arrived at the scene to comfort her.

A neighbour said he heard a loud noise, like a shotgun, and moments later a car speeding from the usually quiet cul-de-sac.

The Hunter Westpac rescue helicopter was initially called to the scene, but later called off.

Police Rescue and forensic officers arrived in Queen St about 11pm.

Newcastle police remained at the scene throughout the night and said further information would be made available on Thursday morning.

The western end of Queen Street and surrounding laneways were blocked off by police.

More to come

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