Officers in bullet-proof vests surrounded the Cadell Street home as the resident, 20, who was alone inside, threatened self-harm.

The street was cordoned off for more than an hour as the stand-off unfolded.

Police arrived at the scene after the man made a call to a woman in Victoria, who knew he had weapons, leaving her concerned for his welfare.

Negotiators used the telephone to persuade the man to leave the house unarmed about 1.10pm.

He was arrested at gunpoint on the front lawn and a pistol and a longarm were later retrieved from the property.

Insp John Wadsworth, of Albury police, praised the efforts of his team in defusing the situation.

“That we can have an arrest where no one was hurt is a big win for police, big win for the person inside the house and big win for the community,” he said.

“We’re very fortunate through negotiation that he listened to what was being said to him and came out.

“It’s a very serious situation ... and an amazingly good result.”

Insp Wadsworth said it was unclear if any shots had been fired inside the house because loud music had been playing.

But he said no shots were fired at police.

The man has been charged with firearm offences.

He was denied bail last night, with a court date still to be determined.

“When he left the premises he totally obliged with whatever was being asked of him,” Insp Wadsworth said.

“This came to a very happy ending really all around,” he said.

“We’ve got some very good police who did a very good job.”

East Albury residents watched the drama unfold.

Daniel Fearne and Richard Dlugosz had tried to walk down an alley behind the property when police warned them to stay clear of the area.

“They kept it all a bit hush hush,” Mr Fearne said.

“(But) once ... we saw they had their flak jackets on we stayed right away from it.”

A neighbour, who didn’t want to be named, said she didn’t know the man at the centre of the siege.