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A usually peaceful residential street has been plunged into chaos after a man reportedly began attacking innocent people with a large knife. 

Police and paramedics rushed to Marion Street in Leichhardt, in Sydney’s inner-west, at about 10.35am on Saturday after receiving reports a man threatened people with a machete before he ran into a building.

Terrified residents said several passerbys had lucky escapes with one man falling to the ground before managing to get away unharmed. 

‘Then another person was walking along the street with a backpack and he tried slash at them and the man held is backpack in front of him to protect himself,’ a terrified witness told news.com.au. 

The man ran inside a mechanic store and briefly barricaded himself inside while members of the riot squad started negotiations using a large loudspeaker. 

The man eventually came out and was ‘grabbed’ by police officers.

Another witness said the man had been holding a ‘large machete’. 

‘He was chasing another man, saying, “get back here” and swinging the machete at the guy, and then chasing other people, and then cut (someone’s) bag open,’ she told the publication. 

A man has been arrested in Leichhardt following a police operation on Saturday (pictured)

A man has been arrested in Leichhardt following a police operation on Saturday (pictured)

The riot squad attended the incident at about 10.35am on Saturday

The man reportedly began attacking innocent people with a machete

The man briefly barricaded himself inside a store in Leichhard before he was arrested

Police were at one point heard negotiating with the man using a large megaphone 

The man is seen being led away by police in handcuffs following the incident

NSW Police said a man had been arrested following a police operation in Leichhardt. 

‘A perimeter was established and – with assistance provided by specialist resources – an operation was initiated to locate the man,’ police said.

‘The man was arrested without incident about 12.30pm and was taken to Newtown Police Station and is assisting police with enquiries.’

The man was assessed by paramedics at the scene. 

Buses were diverted for up to an hour when Marion Street was closed between Cromwell Street and Elswick Street. 

Investigations into the incident are continuing. 

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