A manhunt is underway following a wild police pursuit through Sydney that saw a police officer injured and a shot fired at a stolen car driven by two men in balaclavas.

Last night police conducting routine patrols in Blacktown, in Sydney West, identified a car as stolen and began a pursuit.

The pursuit lasted until Leichhardt in the Inner West, where the car was cornered by a series of police vehicles in James Street.

The stolen vehicle, driven by two people in balaclavas, reversed into a police officer before speeding off, hitting three police cars, two civilian cars and the front fence in the process of making an escape.

It was during this time that one of the officers fired their gun, and police also confirmed that a taser was used in an attempt to arrest the pair.

“During the attempted arrest, a single shot was fired from a police firearm, and a taser was deployed in attempts to stop the occupants of the vehicle,” Acting Superintendent Adam Solah told media.

Solah said the situation was a dangerous one that endangered the lives of police officers and local residents.

“[It was] reckless, careless and extremely dangerous. It’s lucky no one was killed, including the police,” he said.

The vehicle was later found dumped on the side of Crystal Street in Petersham a short time later; the two occupants were not at the scene and have not been identified.

“It’s a very dangerous incident, the footage along James Street, you can see the vehicle driving along the footpath and nearly impacting residents who weren’t involved in the incident, they were just standing outside their house.”

The police officer who hit his head was taken to hospital and treated for minor concussion, but was released overnight.

Solah did not give further details surrounding the circumstances of the shot being fired, but confirmed the matter was being investigated.

“A neighbouring command is conducting an internal review of the circumstances of the incident overall,” he said.