Police have charged two men over a firearms incident in Burnie in the early hours of Saturday morning.

About 2:20 am, the men were reportedly in possession of a sawn-off shotgun when they approached a parked car on North Terrace in their vehicle and pointed the firearm at one of the two occupants.

Later that morning police searched a property in the Burnie CBD. The firearm was recovered at the scene and a 57-year-old man from Queenstown and a 21-year-old man from Reedy Marsh were arrested and charged with aggravated assault and firearm offences.

They are both expected to appear in the Burnie Magistrates Court on Monday morning.

The occupants of the parked car are not known to those charged; however, police will allege the men mistakenly thought it was a known associate within the vehicle.

Police are not seeking to locate anyone else in relation to the matter.

Police take all reports involving firearms extremely seriously and any incident is investigated thoroughly.

Information relating to firearms can be provided anonymously to Crime Stoppers on 1800 333 000 or online at crimestopperstas.com.au.