Image: Nine News

Two brothers, with possible links to terrorism, remain in hospital after being shot by police on the New South Wales-Victoria border.

Counter-terrorism detectives were in Barnawartha North, near Albury, to gather intelligence and had sought assistance from local police to locate two persons of interest.

Local uniformed officers spotted the pair, aged 19 and 30, on Wednesday afternoon and tried to intercept their car.

Police say the driver rammed them before the brothers from New South Wales got out and lunged at officers with a knife and a tomahawk.

Attempts to subdue the pair failed and the men were shot.

One was flown to Melbourne with serious injuries, while the other remains in an Albury hospital in a stable condition.

Police say the men were known to counter-terrorism detectives, but there was no ongoing investigation.

The incident is not being considered a terror-related attack.