A man has died after being shot by police following a confrontation involving a rifle in regional New South Wales. The incident occurred near Rugby, approximately 84 kilometres north of Yass, after police were called to reports that a vehicle had crashed into a tree.

Police were called to the scene at about 3pm on Sunday, where officers found a Chrysler station wagon that had crashed into a tree. The driver appeared to be unconscious inside the vehicle.

According to NSW Police, officers approached the vehicle and attempted to provide medical assistance to the driver. During that interaction, police allege the man aimed a rifle at officers. Police then fired at the man.

Officers immediately provided emergency medical assistance, including CPR, but the driver died at the scene. Police said no officers were injured during the incident.

The man had not been formally identified at the time of the latest report, although police believe he was approximately 45 years old.

A crime scene was established at the location and a critical incident investigation has been launched. The investigation is being conducted by the Critical Incident Team from the State Crime Command's Homicide Squad.

The circumstances surrounding the police shooting will also be subject to an independent review by NSW Police's Professional Standards Command. The review will be overseen by the Law Enforcement Conduct Commission, which provides independent oversight of serious incidents involving NSW law-enforcement officers.

Police are continuing to examine what happened before and during the confrontation, including the circumstances of the vehicle crash, the presence of the firearm and the interaction between the driver and officers.

The incident has occurred in a regional area north of Yass, where police were initially responding to what appeared to be a road crash. The situation escalated after officers allegedly encountered the driver with a rifle.

NSW Police Assistant Commissioner Stephen Hegarty was expected to provide further information about the incident later on Monday as investigators continued their work.

Because the investigation is ongoing, authorities have not released the man's identity or provided further details about a possible motive. The exact sequence of events leading from the vehicle crash to the police shooting remains subject to investigation.

The death is now being examined as a critical incident, meaning independent oversight will form part of the investigation into the use of police force.