Armed police surrounded a street in Wavertree last night after reports of a man with a gun making threats.
Pictures taken at the scene showed an armed officer pointing a weapon in Wellington Road and also patrolling Lawrence Road.
Officers confirmed they were called to an address on Wellington Road, at around 9.30pm on July 6, after reports a man had threatened another man with a gun.
Armed police were deployed to the scene and road closures were put in place on Wellington Road, Picton Road and Fairbank Street while officers dealt with incident.
Today Merseyside Police confirmed two people had been arrested following the incident.
A 27-year-old woman was arrested at the scene on suspicion of possession of a firearm.
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A search was then undertaken of the house, where officers located a gas powered firearm in an underwear drawer.
Officers then detained a 29 year old man, who was found hiding in a shed.
He was arrested on suspicion of possession of a firearm and affray.
Merseyside Police confirmed both have since been taken into custody for questioning.

The incident was stood down as a firearms incident at 11:45pm.
Officers remain at the location carrying out further enquiries this morning.
Detective Inspector Jennie Beck said: "Being in possession of any firearm, whether you intend on using it or not, is dangerous and puts the owner and wider community at risk.
"This threatening behaviour will not be tolerated by us - and those living in Merseyside should not feel scared to go about their daily lives or ever have to come face to face with someone carrying a weapon."
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Anyone with information on this incident or knows someone else who might be in possession of any type of firearm is asked to get in touch, either @MerPolCC or by contacting @CrimestoppersUK anonymously.