SHOCKING footage has captured basketball fans fleeing for their lives from a shooting at a massive victory rally for the Toronto Raptors.

Toronto police say that two victims have been located following the shooting incident at Nathan Phillips Square.

Two people also taken into custody and two firearms recovered. Injuries described as serious, but non-life-threatening.

Videos posted on social media shows red-clad crowds, including children, sprinting away from the festivities.

One clip taken from the top of a nearby building shows a wave of fans scattering away in panic from the stage in Nathan Phillip's Square.

Raptors announcer Matt Devlin, who was on stage, told the crowds there was an emergency and attempted to keep everyone calm, witnesses said.

Canadian Prime Minister Justin Trudeau, Toronto's mayor and the Raptors players remained on stage while the ceremony was briefly interrupted.

A reporter from the Toronto Star tweeted that he heard gunshots being fired.

"One witness said four shots. Crowd ran. There is a victim down being given medical attention, surrounded by a crowd, and police are clearing people from the area. Speeches are still going on," he said.

"Crowd on east side running again. Cops said get down. Oh no," he added.

Some 1.5 million fans descended on the city to celebrate the Raptors' victory over the Golden State Warriors last week, the first time a non-US team has won the NBA title.

However, there have been problems with overcrowding.

The parade route ends in a square outside City Hall, where cops are lifting those seeking safety over barricades to help them escape the crush.

Local media reports that a child had to be pulled over a barrier and onto a stretcher was among those evacuated.

City officials have prevented any further entry into the square and have shut down several subway stations near the parade due to overcrowding.