Armed officers from the Met Police raced to Hastings close on the Willbrook Estate in Peckham after residents reported a firearm was shot at a number of people who made off across the estate.
A number of roads have been cordoned off by Police along with the entrance to a block of flats on Peckham Hill Street.
A bus shelter on Bonar Road near the incident that happened at around 11.31pm on Friday evening has also been cordoned off.
Forensic officers along with other specialist have been combing the large scene for evidence a number of items of clothing have been left at the scene and marks can be seen on long a pavement that is being guarded by officers.
The Met Police has been approached for comment on the incident