British police say they have found no evidence of any shots being fired after reports of gunfire sparked panic in the heart of London.

Police descended on the area around Oxford Circus, one of London's busiest subway stations, after reports of shots being fired.

Thousands of people ran in panic or took shelter in stores along busy Oxford Street.

About an hour after the first reports, the Metropolitan Police force said "police have not located any trace of any suspects, evidence of shots fired or causalities."

They say people in the area should leave and that those inside buildings should remain there.