A firearm has been found after police urged residents in an area of the Sunshine Coast to stay indoors amid a desperate search for a person believed to be armed.

An emergency declaration under the Public Safety Preservation Act (PSPA) was declared by police at 12.55pm on Sunday following a crash involving a reportedly stolen vehicle outside of a property in Glenview, a Queensland Police Service statement said.

Police had rushed to an area near Old Caloundra Road about 11:14am after reports the red Mitsubishi Outlander had crashed, with the occupants fleeing into nearby bushland.

The theft of the vehicle reportedly occurred near a business on the Bruce Highway at Morayfield around 5:45am that morning, with its driver reportedly threatened with a firearm, police said.

An abandoned firear

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