Emergency services arrived at Knox Street, Belmore, just before 4am to find a man in his 20s with gunshot wounds to his torso.
Paramedics tried to treat the man but he died at the scene.
NSW Police have established a crime scene to investigate the fatal shooting.
Knox Street remains closed this morning while police investigate the circumstances of the shooting.
Relatives and friends made their way to the crime scene this morning.
One woman was heard yelling, “Why didn’t police stop this?”
9News understands a car was found torched in Croydon Park, a suburb nearby, a short time later and police are investigating if it is linked to the shooting.
It is the second shooting in Sydney in four days.