A man has been shot by police in front of his two teenage children at a home across the road from a Perth school, after allegedly ramming a police patrol car.

Another man was also arrested during the altercation with officers.

The incident unfolded when officers sighted a stolen silver Subaru Impreza hatchback parked in the driveway of a home on Firetail Court in Seville Grove around 11am, Western Australian police confirmed in a statement.

Officers approached the home, which is opposite the Cecil Andrews College in Perthís south-east, and saw two people sitting in the car.

They then parked their patrol vehicle immediately behind them.

Police allege the Subaru then reversed into their vehicle multiple times, causing significant damage, before a passenger exited the car and fled on foot into a nearby alleyway.

He was chased by one of the officers from the patrol vehicle and later arrested.

Meanwhile, the Subaru continued to ram the police vehicle until it was able to move around it and was no longer boxed-in.

The driver of the police vehicle then shot the 31-year-old driver of the Subaru, who was still seated in the car, through the vehicle's windscreen.

The single round that was fired hit the man in the shoulder and the police officer immediately administered first aid.

St John Ambulance paramedics also attended the scene before he was taken to the Royal Perth Hospital with non-life-threatening injuries.

He remains in a serious but stable condition.

WA Police inspector Geoff Desanges told media that the reasoning behind the discharge of the police officer's weapon remains unclear and are now subject to an internal investigation.

"There are certain requirements that police officers must meet when they withdraw their weapon, let alone discharge it," he said.

"No doubt that was considered by all concerned."

9NEWS understands the incident occurred in front of the man's two teenage children.

The manís son, a 17-year-old, ran to his grandmotherís home nearby, where his mother had been at the time of the incident to alert her of the shooting.

Mervyn Eades, from Deaths in Custody Watch Commission WA, told reporters the incident was traumatic for the children of the man, who is believed to be of Indigenous ethnicity.

"Shooting a father in front of his children, the trauma that that's going to impact on the children is going to be massive throughout their lives and that's very concerning for us," he said.

"They've come out and shot another Aboriginal male in this incident here today and we find that quite shocking that they're resorting to shooting our boys.

"The last resort should be shooting anyone. They've got tasers... why didn't they taser him?

"Letting a gun off near any school is not good and not right... As a wider community, we're disgusted that a young man has been shot whilst being arrested.

"That's a son, that's father that they've shot. They could have arrested him some other way.

"They do say that they tried to surround him in that drive way and he ran into the police car. May that be the truth or not, that does not give them the right to use the excessive and brutal force of pulling out a gun and shooting someone to arrest them.

"We as a community are sick and tired of this sort of brutality happening within our community by the police force."

Following the altercation, staff from the nearby school, Cecil Andrews College, sent parents a text message saying: "An incident has occurred outside of school. Police are involved (and there is) no threat to students."

Firetail Court has also been cordoned off by police as the Homicide Squad and Police Internal Affairs scour the scene for evidence.

The officers involved in the shooting will also undergo drug and alcohol testing.