Two people have been shot dead and three others injured after a gunman opened fire when a fight broke out at a restaurant on New Year's Eve.

Shots were fired on Monday evening at the Sports Corner Cafe in the Old Sacramento area of California but it was not clear whether the shooting took place in or outside of the restaurant, police said.

No details of the shooter have been released but Mayor Kevin Johnson tweeted today that there was 'no indication of any outstanding suspects'.

One witness told CBS: 'They had one person in an ambulance and one person in a cop car. I saw the gun in the hand. He was just screaming and shooting.'

Another bystander said that the weapon made a 'pop' noise and sounded like a Glock gun.