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Police said in a statement on Sunday morning that four people were “injured following a crash and suspected stabbing a short time ago”.
“There is definitely an incident in Engadine,” a police spokesperson said, referring to a suburb in the south of the city of around 5 million people.
Police said they did not believe anyone was killed in the attack.
They said a man who allegedly ran from the scene was Tasered and had been taken into custody.
A police officer was among those injured in the attack, authorities said.
Sydney has seen a spate of knife attacks this year, prompting the New South Wales state government to toughen its knife laws. The state parliament passed laws in June giving police electronic metal-detecting scanners to check people without a warrant at shopping centres, sporting venues and public transport stations.
In April, six people were killed and 12 injured in a knife attack at a mall in Sydney’s Bondi area.
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