NSW Premier Chris Minns has confirmed an attack on a Sydney bishop last night is being treated as a terrorist attack.

Minns this morning said Police Commissioner Karen Webb had so designated the stabbing at nearly 2am.

Bishop Mar Mari Emmanuel was stabbed during a service at the Christ The Good Shepherd Church in Wakeley just after 7pm overnight.

A religious leader was allegedly stabbed during a service at Christ The Good Shepherd Church in Wakeley, Sydney. (Twitter)

Father Isaac Royel was also injured.

Parishioners apprehended a 16-year-old who is now in police custody, but the incident sparked fury in the community with a large crowd gathering outside the church.

Two police were injured, one suffering a broken jaw.

Upwards of 100 police and more than 30 police vehicles swarmed the area, including specialist officers and the police helicopter.

Stabbing bishop Christ The Good Shepherd Church in Wakeley
Large crowds could be seen on the streets surrounding the church. (9News)

Footage from the scene showed capsicum spray being used at one stage to try to disperse the crowd. It also appeared that police at one point used a ladder to break down a door in order to reach ambulance workers who were sheltering behind it.

By the time it was deemed safe enough to remove the teenager from the church, police whisked him away to an undisclosed location for his own safety, Acting Assistant Commissioner Andrew Holland said last night.

The church this morning released an official statement calling for calm.

“The Church denounces retaliation of any kind,” the statement read in part.

The church called for its congregation to pray both for the wounded clergy, and for the alleged attacker.

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