Police in the Australian state of New South Wales (NSW) are searching for a man who shot another man before stealing money and a car south of Sydney on Friday night.

The NSW Police Force said in a statement on Saturday that emergency services were called to reports of a shooting at a hotel in the coastal town of Narooma, 280 km south of Sydney, around 10:30 p.m. local time on Friday.

Officers were told at the scene that an unknown man had entered the hotel before shooting a 31-year-old man, threatening other patrons and stealing cash.

The perpetrator then approached a vehicle in an adjacent car park and produced a firearm to demand that the 17-year-old driver get out of the car, which he subsequently used to flee the scene.

The 31-year-old shooting victim was treated at the scene by ambulance paramedics before being taken to the hospital in a stable condition.

A short time later, police said the stolen vehicle was located on fire on a major highway.

Police commenced an investigation into the incident and asked anyone with information to come forward.