Police in New South Wales say a man has died after being shot during an altercation in Wagga Wagga.

Emergency services were called to Connorton Avenue in the suburb of Ashmont about 3am Monday.

Police said the man, who was yet to be formally identified, was treated by paramedics but died at the scene.

A homicide squad investigation is underway. (ABC Riverina: Andrew Mangelsdorf)

A crime scene was established and forensic officers have examined the site.

Detectives from the state command's homicide squad will conduct the investigation.

'Something had gone terribly wrong'

Connorton Street resident Sabar Ejaz said he woke up about 2am to the sound of men screaming and shouting.

"They were very aggressive and shouting at each other and running around," he said.

"Then they had vehicles … driving around and still shouting to each other."

Sabar Ejaz says the shooting has shaken his neighbourhood. (ABC Riverina: Andrew Mangelsdorf)

Mr Ejaz said he saw people going in and out of a house across the road from his home.

While unsure exactly what had happened, he said it "looked like something had gone terribly wrong".

Mr Ejaz said police arrived on the scene about an hour later and began searching through a nearby park.

"They went to this bushland area and were looking with their torches," he said.

Mr Ejaz said the situation left residents feeling very uncomfortable.

"I think police patrolling should be increased in this area at night time because I only very rarely at night time see police patrols this area," he said.

Police are urging anyone with information, dash-cam or CCTV footage to contact Crime Stoppers on 1800 333 000.

Source: Australian Broadcasting Corporation.