A significant search is underway for a man who shot dead two police officers and seriously wounded another, as panicked locals in a rural town are told to shelter indoors.

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A group of 10 officers had attended a property on Rayner Track in Porepunkah, about 300km northeast of Melbourne, at 10.30am on Tuesday to execute a search warrant.

Two officers were killed when a man shot at them. A third was seriously injured and is undergoing surgery.

A "significant" search is underway to find the man, who police sources said was believed to be travelling with his wife and children.

"We have deployed all specialist resources into the area to arrest th

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