Man killed by police 'had mental health issues'

It is believed a 43-year-old man shot dead by police near Newcastle last Friday had a history of drug abuse and mental health issues.

About 5:00pm AEDT last Friday, police officers were called to Spinnakers Leisure Park on the Pacific Highway at Belmont on the mid-north coast of New South Wales to investigate reports of a domestic dispute.

There was then a stand-off between police and long-time park resident Michael Capel in a children's play area.

Mr Capel, who was armed with a knife, refused several police requests to drop the weapon.

Officers used capsicum spray in an attempt to subdue him but when it had no affect, police shot Mr Capel dead.

Mr Capel had a long history of drug and alcohol abuse but was also dealing with mental health issues.

The critical incident team and homicide squad are investigating. Police are also preparing a report for the coroner.

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