Police have cordoned off a block of a street in central Dunedin after a suspicious package was found at a branch of NZ Post/Kiwibank, on the intersection of Moray Place and Great King Street.

People in neighbouring buildings in Moray Place have been evacuated amid a heavy police presence, after they were tipped off about the package at 1.30 this afternoon.

"The police came into the building and said 'Police are here, everyone leave,'" an office worker told the ODT.

Christchurch bomb defusing specialists are due to arrive around 4pm, with the all clear expected to be given by 5pm. 

"As a precaution police are establishing cordons in and around the intersection and evacuating nearby buildings," a police spokesperson said earlier.

Countdown supermarket has also been evacuated.

Police cars are blocking the entrance to the area and cordon tape has gone up. Police declined to comment on whether the incident was a bomb scare.

Members of the public are being asked to avoid the area.