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Emergency services are responding and treating multiple patients.
Witnesses reported seeing multiple police cars and ambulances arriving on the scene.
Jack Huddo wrote on Twitter: "A random dude just started stabbing people in the city right outside where we were having lunch. I saw people running so I ran towards him with a few other guys."
"He ran all the way back to near my work where a lot of others had cornered him for the police," he said.
Ben Kimber wrote he saw "cops cars, ambos, cop bikes all converging on York St".
"I’ve even seen three undercover cop cars pull up and blokes running from them down the street," he said.
The Transport Management Centre told motorists to avoid King Street due to the operation.
"All lanes of King Street are closed from Clarence Street to York Street. Traffic in the area is heavy, and motorists are advised to use an alternative route," they said.
"Buses are also diverting away from King Street and are using Clarence Street, Market Street, Kent Street and Erskine Street then returning to Clarence Street.
"Emergency services are on site, and traffic crews are responding."
Natassia is a journalist for The Sydney Morning Herald.









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