Footage has captured the moment gunfire erupted in New York City's world-renowned Times Square, mere hours following the New York Knicks' championship parade.

The video, seemingly recorded by a surveillance camera overlooking the square, shows tourists going about their business before five sharp cracks pierce the air.

The crowd immediately disperses, with visitors spotted racing towards buildings and round corners to escape the busy open-air plaza. Screams and cries ring out amid the pandemonium.

Some pedestrians, seized by terror, bolt into the road, where vehicles continue crawling down Seventh Avenue, motorists cautiously manoeuvring through the scattering crowds.

Others seem bewildered, standing frozen in the middle of the road or the square, uncertain which way to go or what action to take.

Within seconds, the crowded tourist hotspot clears, leaving merely a handful of individuals lingering at the periphery of the central plaza.

The incident occurred at 3:37pm on Thursday, according to a New York Police Department spokesperson who addressed Daily Express US.

"At approximately 15:37 hours, police responded to shots fired in the vicinity of 43rd St. and Seventh Avenue," the spokesperson confirmed.

"Officers observed an individual discharging a firearm into the crowd," the spokesperson added. A man was subsequently detained, and authorities retrieved a firearm at the scene, though it remained uncertain whether the weapon was linked to the suspect.

No injuries were reported, and the NYPD has launched an investigation into the incident.

Further footage captured at street level shows a man recounting the chaotic scenes in the busy tourist hotspot. He describes individuals fighting amongst the crowd moments before shots ring out directly ahead of him.

Onlookers are seen instantly fleeing the scene, almost knocking into him as he records the incident. He tells viewers that he has just witnessed a shooting.