The incident happened in Camden Road near York Way at around 9.45am yesterday (August 19).
Officers rushed to the scene and arrived within three minutes.
They arrested a man on suspicion of possession of an offensive weapon.
He remains in custody.
There were no reports of any injuries.
A spokesperson for Metropolitan Police said: “Police were called to Camden Road, N7 at 9:49hrs on Tuesday, 19 August following reports of a man being seen with an axe.
“Officers attended the scene within three minutes and arrested a man on suspicion of possession of an offensive weapon.
“He remains in custody.
“No injuries were reported.”