Armed police are deployed in the city at the Masjid Al Noor mosque where the shooting happened in Hagley Park at 1.40pm (NZT) on Friday and schools across the city are now in lockdown.
According to initial reports, the Bangladesh cricket team was inside one of the mosques, but all managed to escape.
Speaking to New Zealand Herald, Bangladesh's team strength and conditioning coach, Mario Villavarayen said: "The players are shaken up but fine".
Gunfire was heard coming from the direction of the mosque and several people were seen on the ground outside the building, One News reported.
About 20 armed police are clearing buildings in the suburb of Linwood and police are warning people to stay indoors and to report any suspicious behaviour.
Media reports suggest that at least 20 shots were fired.
Cricinfo's Bangladesh correspondent Mohammad Isam posted a video to Twitter of the team rushing through Hagley Park away from the mosque.
The South Island city was placed in lockdown as police hunted for an "active shooter".
Facebook, Instagram accounts working after historic outage
We've asked Facebook how it intends to resolve its issues with angry advertisers, but did not receive an immediate reply. The interruption also affected gameplay for owners of Oculus VR headsets, a company that Facebook bought in 2014.
Tucker Carlson Doubles Down On Racism
This is Carlson speaking in 2006. "I haven't", Carlson claimed. Ilhan Omar (D-Minn.) because she wears a hijab. On Monday, he said his network supports him.
New Avengers: Endgame Trailer Drops And Sets Up Epic Battle
It's almost time for the Avengers to assemble once more - and that means there's a new trailer to tease us with what's to come. Brie Larson's Captain Marvel , who will make her Avengers debut in Endgame , might just be the universe's saving grace.
New Zealand Police says one person has been taken in cusotdy.
"Police believe there may be other offenders", the New Zealand Police tweeted.
"Alhamdulillah Allah save us today while shooting in Christchurch in the mosque", tweeted another player, Mushfiqur Rahim.
Bangladesh and New Zealand are scheduled to begin the third and final Test at Hagley Oval on Saturday.
"They were devastated and terrified and I saw guys who were from the mosque covered in blood sitting in ambulances".
A New Zealand Cricket spokesperson said it was an "unfolding situation" around if the match would go ahead.
"Police is responding to a very serious and tragic incident involving an active shooter in central Christchurch".
Ibrahim said people began running out of the mosque and he "had to jump out of the wall" to escape.