An Australian man has been killed and another injured during a shooting incident that broke out at a tourist villa in Bali, local police say.

Badung Police Chief Arif Batubara said authorities received reports that there had been a shooting on Saturday morning.

The two victims were rushed to a hospital in Denpasar, the provincial capital of Bali, Mr Batubara said.

A wide shot of a villa in Bali with yellow police tape stuck across the property's entrance

Local police say an Australian man died in a shooting incident, with another Australian man injured. (Supplied)

Local police identified the man who was killed as Zivan Radmanovic, a 32-year-old from Melbourne.

Police did not yet have a motive for the shooting, Mr Batubara said.

“At the moment we’re still investigating the case and working on the crime scene and trying to find witnesses,” he told reporters.

“We’re collecting information in the field now because we’ve just received this information this morning … please be patient.”

He said the shooting broke out at Villa Casa Santisya.

A police officer stands out the front of a police building.

Badung Police Chief Arif Batubara said one Australian was shot dead and another injured. (Supplied)

The Australian Department of Foreign Affairs and Trade said it was “providing consular assistance to the family of an Australian who died in a shooting incident in Bali”.

It was also “ready to provide consular assistance to another Australian injured in the same incident”, it added.