"Police urge anyone in central Christchurch to stay off the streets and report any suspicious behavior", he said in a statement. It wasn't immediately clear what the reported incident was.
He said Bangladesh cricket board is in contact with New Zealand cricket authorities and would take further decision after consultation.
There are reports that six people have been killed, though officials have not confirmed any fatalities.
It is understood that the team was on a bus after it had gone to the mosque situated near Hagley Oval where Bangladesh and New Zealand were scheduled to play a One Day International on Saturday.
Player Tamim Iqbal tweeted that it was a "frightening experience" and that there were "active shooters".
Police Commissioner Mike Bush said in a statement that "all Christchurch schools have been placed into lockdown".
The gunman live streamed the brutal attack on Facebook and wrote a 31-page manifesto about his plans to carry out the event.
One man said the scene at the mosque was chaotic.
He knew he "was not safe", jumped out of the window and hid behind a fence until police arrived. There were three in the hallway, at the door leading into the mosque, and people inside the mosque, " he said.
The Department of Foreign Affairs and Trade is aware of reports of a shooting incident at a mosque in central Christchurch.
Mohan Ibrahim described events to the Herald, saying he ran for his life when he heard the shots.
"Then suddenly the shooting started".
"I saw some people drop dead and some people were running away", he said. It was at the moment I realised things were really serious.
"I saw dead people everywhere".
"He did his massacre inside the mosque".
Police placed all of the city's schools on lockdown amid the incident. calling a "serious ongoing firearms incident".
Witnesses told local media there were several casualties inside the building.
A man with a gun reportedly went into the mosque about 1.40pm on Friday.
About 300 people were inside the mosque for afternoon prayers.
The Masjid al Noor was filled with worshippers, including members of the Bangladesh cricket team.
Taking to Twitter, he said: "Entire team got saved from active shooters!"
"Frightening experience and please keep us in your prayers".