Police are currently responding to reports of a man with a firearm in East Gippsland, Victoria Police say.
They were notified that a man was inside a hotel located on the Princes Highway between Cann River and Orbost at about 9.30am.
A woman attended the hotel and was confronted by a man of Asian appearance who was in possession of a firearm.
The man did not threaten her directly or make any specific demands.
The hotel was closed at the time.
She left the hotel and reported the incident to police.
No one was injured during the incident.
Police subsequently attended and set-up a cordon and are awaiting the arrival of the specialist Critical Incident Response Team.
The Princes Highway is blocked at Cann River and Orbost and there are no diversions in place so police are asking that all non-essential travel be avoided at this time.
