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Man dies on Syd street after 'altercation'

Two people are on the run after a man suffered serious head injuries in an "altercation" before staggering onto a suburban Sydney street and collapsing dead.

Detectives say a firearm was discovered near the man's body in Forest Lodge on Friday afternoon but they haven't yet confirmed he was shot.

It's been speculated a samurai sword could also have been used in the attack.

"A firearm was found at the scene but at this point of time we're not sure whether that was the cause of the injuries," Acting Superintendent Sam Crisafulli told reporters.

"I'm not in a position to talk about exactly what weapons were involved."

The victim - in his lates 20s or 30s - died following an "altercation" with another man and a woman, he said.

A nearby house has been declared a crime scene as has the intersection of Hereford Street and Minogue Crescent where the victim's body was found about 1pm.

"We believe the injuries were caused during the altercation and that he was able to get down to the street where his body was found," Supt Crisafulli said.

Witnesses have told police they saw the victim bleeding profusely from the head as he staggered down nearby Ross Street, he added.

"I'm satisfied after a search of the area by police, the people we're looking for are not around at the moment," he said after 3pm, adding local residents would soon be allowed to return home.

Philippe, who has lived in the area for more than seven years, said it was usually a very peaceful neighbourhood.

"I thought when I saw the helicopter it was a hit and run," he told AAP.

There was a stabbing nearby a few weeks ago, Philippe added, but violence was rare.

© AAP 2018