THIS is the dramatic moment a man is shot by armed police.

The incident happened in Bishop Auckland last year.

Durham Police released the footage on Friday afternoon, following the sentencing of Sam Houlihan.

Psychiatric reports on Houlihan concluded that he suffers schizophrenia, which is made worse by alcohol or drugs, and episodic psychosis.

He had refused to put down the air weapon he was carrying despite repeated warnings from armed police marksmen.

Houlihan was in a taxi when police surrounded the vehicle. The taxi driver managed to escaped unharmed as police closed in on the suspect.

They can be heard shouting multiple times for him to put the gun down.

One officer, who has not be indentified, shouts: "Mate put your hands up, put your hands where I can see them.

"Put that phone out the window now, throw it out the window now. Throw it on the grass now, open the door, slowly."

As he continues to sit in the vehicle, another officer shouts: "Keep your hands where we can see them."

"When you get out you drop to your knees and put your hands on your head, do you understand," the first officer says.

All of a sudden the tension rises.

"He's readying it, he's readying it," an officer says, referring to Houlihan's weapon.

"Driver get out, move," they shout at which point the taxi driver makes his escape.

Turning their attention back to Houlihan, an officer shouts a final warning: "Put it down, you are going to be shot."

Another voice can be heard shouting: "We don't want to shoot you."

But with that a shot is fired, the window of the taxi implodes and the drama is brought to a conclusion.

On Friday, Houlihan was placed in a secure hospital unit indefinitely, under the Mental Health Act.

During today’s sentencing, Judge Christopher Prince said the officers involved should be commended for their conduct during the incident.

“They were very professional, they were calm and they were composed,” he said.

The Bolton News:

Houlihan walks into Cockton Hill Working Mens Club in Bishop Auckland with the weapon in his hand

“I am reassured, and I am sure other people will be reassured to know that Durham Constabulary employ such professional officers who will readily respond to a production of a firearm or any other weapon quickly and calmly.”

Detective Chief Superintendent Adrian Green, from Durham Constabulary, said: “Today’s sentence reflects the seriousness of the incident involving Houlihan.

“It is still unclear what Houlihan’s intentions were, but his possession of a firearm in a public place was reckless and frightening to the public and attending police officers.

“While incidents of this nature are rare, it demonstrates clearly the dangers of possessing firearms and replica firearms in public. It also shows Durham Constabulary’s ability and commitment to deal with these types of incidents and keep our communities safe.”