RELATED COVERAGE: New video of Eaglehawk Arrests
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UPDATE WEDNESDAY 6.45PM: BENDIGO police have confirmed three males were arrested in Sailors Gully Road in Eaglehawk this afternoon.
Acting Sergeant Mark Bell said police were called to three males in a car parked on the side of Sailors Gully Road. Police believed the men to be in possession of a firearm.
"The area was cordoned off and contained and police approached the vehicle," he said.
"Three males were taken into custody. There were no injuries to anybody and the males were all compliant."
Police searched the vehicle and the investigation is ongoing.
Acting Sergeant Bell said two of the people arrested were wanted in relation to other offences.
"The three males are at Bendigo station and investigations into today's incident and everybody's involved in the incident are still being investigated," he said.
"A search of the immediate vicinity is currently being undertaken by the SES."
EARLIER: POLICE have stopped traffic entering Sailors Gully Road at Eaglehawk.
A black Ford utility was pulled over near the intersection of Cook Street and Sailors Gully Road about 4.15pm, and three people have been taken into custody.
Eight police units responded to the call and were searching in bushland near the vehicle.
The Bendigo Advertiser understands the State Emergency Service has been called to the scene to do a line search in the bushland alongside the car.
Witnesses have seen weapons being removed from the vehicle.
It's believed the car has been on the side of the road since 3.30pm.
More to come.