A man has died after being shot by police, and five people were rescued, following a dramatic six-hour siege at a Brisbane business.

An allegedly armed man who was holed up inside a Brisbane southside business on Monday evening has died after being shot by police.

Heavily-armed specialist police were called to the scene at Compton Rd in Stretton about 1.20pm following reports a man was inside a business armed with a gun.

Nearby businesses were evacuated while police attempted to speak to the man.

Dozens of emergency services vehicles, including police and ambulance, were clustered around the Liberty Fuels service station, with Polair patrolling overhead.

Officers were also at the rear of the service station.

It was earlier unclear whether the gunman was inside the service station or an adjoining business.

In a statement late on Monday night police confirmed five people were also inside the building at the same time as the alleged gunman but that they were locked inside the premises in a separate room.

Police will allege at about 7.30pm, the man, a 48-year-old from Woodridge, raised his firearm at police and was shot by officers.

He was taken to the Princess Alexandra Hospital in a critical condition where he later died.

There were no other injuries.

The backstreets of Stretton were chaotic during the siege, with Penson St and Roosevelt Dr gridlocked while people tried to find a way around the blocked section of Compton Rd.

A large exclusion zone was put in place.

Extracted in full from: Stretton: Alleged gunman shot and killed by police after siege | The Courier Mail