The incident happened in Hideaway Drive, not far from Salt Ash Public School.

Police confirmed the incident was being "treated as a homicide" and the man had a head injury.

Forensic Services were called to investigate, with police blocking off the road and a crime scene established.

"The male driver of the Ford Ranger utility was found suffering a gunshot wound. He could not be revived and died at the scene. The man is yet to be formally identified," a police statement said.

Police confirmed the male driver was "fatally shot".

A crime scene was also established in Masonite Road at Heatherbrae, after a second vehicle linked to the incident was found burnt out.

"Both will be examined by specialist forensic officers," police said.

"Detectives - assisted by the State Crime Command's Homicide Squad - have established Strike Force Breve to investigate the circumstances surrounding the man's death, which is being treated as suspicious."

Emergency services were called to the scene shortly before 1.45pm, after reports a vehicle had hit a tree.

First responders were initially unsure whether the man had head injuries due to a car accident or something more sinister.

They were confronted by a grisly scene and it soon emerged that the incident involved more than a car crash.

"Officers from Port Stephens-Hunter Police District attended along with NSW Ambulance paramedics," the police statement said.

Firefighters also attended the Salt Ash site, before being called to extinguish the vehicle engulfed by flames at Heatherbrae.

Josh Dryden, manager of Paul's Corner Fruits & Liquor at Salt Ash, said it was hard to believe such an incident had happened in what is normally a small, quiet town.

The shooting happened not far from the shop.

"I've never heard of anything like that happening here. That's crazy. We heard the cop cars screaming past, but people just said someone had run into a tree up there."

He wondered what the incident was related to.

"If someone is going to shoot you in the head, then burn out a car, it's pretty obvious what's happened."

Anyone with information or dash cam vision can contact Crime Stoppers on 1800 333 000.

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