A man has been charged after he allegedly tried to grab a police officer's gun, causing it to fire in its holster.

Police were called to G.E.L. Motors in Separation Street, North Geelong, at 9am, after reports of a dispute at a business.

Police say the 30-year-old tried to grab the gun as officers were trying to arrest him in North Geelong on Wednesday morning.

Police say they tried to use capsicum spray to subdue the man before the alleged incident took place.

A worker at The Mule Coffee Shed told local radio station K-Rock that staff heard what they thought was a gunshot coming from the mechanic's business next door. 

"All of a sudden, we heard a loud crack and the staff turned to each other and said 'that sounded like a gunshot'," the worker said.

He said seven police cars arrived within minutes and then more arrived. Up to 13 police cars were called to the scene, according to K-Rock.

A police statement said nobody was injured as a result of the firearm discharging but the officer sustained minor injuries as a result of the scuffle.

Ambulance Victoria were called to the scene but did not treat nor transport anyone, a spokeswoman said.

The man was charged with conduct endangering life, serious police assault and resisting arrest and will appear in the Geelong Magistrates' Court on Wednesday afternoon.

With AAP