16/06/2017 5:05 PM AEST | Updated 16/06/2017 7:15 PM AEST

Police Arrest Armed Man Holed Up In Melbourne House

Authorities have lead the man from an Epping house in handcuffs.

Victoria Police have arrested a man who was armed with a handgun and refused to exit a house in Melbourne's North on Friday.

Authorities were negotiating with the 26-year-old man, who is believed to have exited a house on Wedge Street, Epping before returning inside. The police operation came as part of an ongoing investigation by the Darebin Crime Investigation Unit, according to a statement.

Police surrounded the Epping residence around 2pm and continue to remain on the scene.

Road diversions were put in place for the surrounding area but it is understood there is no direct threat to the general public.

Earlier reports stated the man trapped himself for more than an hour inside the building with another woman and multiple children, although police have since confirmed to HuffPost Australia they believe they were not held against their will and refused to leave the house before eventually exiting the residence.

Meanwhile, police who are patrolling the area also arrested another man after he was caught wielding a baseball bat on a street lining the property after tensions rose between neighbours.