BREAKING: Manhunt for gunman after fatal shooting in German town of Halle

EARLY police reports have revealed that a manhunt is underway after two people have been killed and several more injured in a shooting in the German town of Halle.

Local media reports that the attack occurred near a synagogue in the Paulus area of the city by a man wearing military style dress using a sub machine gun.

There are also reports that he threw a grenade style weapon at a Jewish cemetery before fleeing the scene.

Witnesses say that the gunman was wearing camouflage and was carrying several weapons in his person.

Reports also suggest that as the gunman fled the scene, shots could be heard nearby, indicating a second shooting.

German police have cordoned off the Paulus area and have warned residents to stay indoors as an area wide search is underway, with the assailant believed to be heading to the Leipzig area.

Details are scarce at this time and it has not been revealed whether it is a terror attack.

However indications point to it being an antisemitic attack as the violence, seemingly aimed at Jewish landmarks, coincides with the Jewish Atonement Day, Yom Kippur.