Police have shut down part of Lambton Quay in central Wellington and hundreds of people are being evacuated from buildings on both sides of the road.

A reporter at the scene says hundreds of people are lining the streets.

"Everyone leave," one officer is repeating loudly as she directs people away.

Officers are also evacuating nearby buildings, including the Whitcoulls across the road.

The street is being cleared between Johnson St and Panama St.

Police have confirmed the area is being evacuated after they were alerted to a suspicious bag located near a bus stop on Lambton Quay in Wellington.

The area is being evacuated as a precaution and cordons are in place stopping foot traffic. Vehicle traffic is being diverted from the area.