They have urged anyone who saw anything suspicious in the Gartan Square area, or may have video footage, to come forward.
Detective Sergeant Gingell said: “Police received a report at approximately 10.10pm on Friday, March 15 that a man was observed in the Gartan Square area carrying a black handgun.
"The suspect was wearing a black-hooded jumper and is believed to be aged between his late 30s and early 40s.
"A short time later, two loud bangs, believed to be gunshots, were heard in the nearby area.
"At this stage we believe the gun was fired by the suspect - though we have received no reports of any injuries.
"Our enquiries are continuing and we would like to hear from anyone who was in the Gartan Square area on Friday between 9.45pm, and shortly before 10.10pm, and noticed or heard anything suspicious, to make contact with police on 101 quoting reference 1983 15/03/24.
"We are especially keen to hear from anyone who may have CCTV, dash-cam or mobile phone footage of the area during this time.”
A report can be submitted online using the non-emergency reporting form via http://www.psni.police.uk/makeareport/ or to Crimestoppers anonymously on 0800 555 111.
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Detectives in Derry / Londonderry are appealing for information and witnesses following a report of shots being fired in the city. Picture: Pacemaker (stock image) Photo: Pacemaker