No casualties were found in the incident which police initially believed might have been terrorist-related.
London's police force said on Friday that they had stood down after an incident in the heart of London's shopping district that they initially responded to as if it could have been terrorist-related.
"Our response on #OxfordStreet has now been stood down," the Metropolitan Police said on its official Twitter account.
"Given the nature of the info received we responded as if the incident was terrorism, including the deployment of armed officers," police added.
The police said they had found no evidence of previously reported gunshots, and that there were no casualties.
Britain's transport police said they had received a report of one woman suffering a minor injury, while no casualties had been found so far.
Police continue to advise people to avoid the shopping district in central London, and to seek shelter inside buildings if they are already in the area.