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Australian students shot in New Orleans

American police are chasing three suspects after two Australian students were shot following a reported dispute over drugs.

The two university students, from Western Australia, are both in a stable condition in hospital after the New Orleans shooting.

Scott Burke, managing editor of local TV station WDSU, told Ross and John it was believed the pair had approached an unknown man at a bar on the famous Bourbon Street strip and asked to buy drugs.

He said the pair is then believed to have got into a car with another unknown man, who drove across the Mississippi River to nearby Algiers.

An argument over money then issued.

‘At that point, they were shot,’ Mr Burke said.

Click PLAY below to hear more from Scott Burke on 3AW Breakfast