Police have released new CCTV footage as they search for a gunman involved in a bizarre shooting in one of Sydney's most affluent suburbs.

Officers from Leichhardt Police Area Command started investigating the shooting at Pearson St, Balmain East in August 2019 following reports of gunshots.

At the time, witnesses said they heard shots before watching a white hatchback smash into a parked car and drive off.

They also told police they saw two men running away from the street.

The white Hyundai Accent was found abandoned at The Terrace, Birchgrove the next day. It had bullet holes in the passenger side of the vehicle and damage from the crash.

Blood was also found inside the vehicle.

Investigators later released an image of a man seen loitering in a nearby underground car park and believe he may be able to assist with their inquiries.

The man is described as being of a medium sized build, wearing all black clothing and carrying a small satchel. He had short dark, cropped hair.

Police have now released new footage which shows a red Mazda driving in the area. Officers are asking the community for anyone with any knowledge or information about the occupants of the red Mazda to come forward.

Originally published as CCTV released in hunt for Balmain shooter