The men, aged 18 and 25, were arrested during the “pre-planned” move by West Yorkshire Police in Roundhay Road in Harehills at around 9pm on September 16.
After an amount of drugs were seized from the vehicle, the suspects were arrested on suspicion of conspiracy to supply class A drugs and are currently in custody.
An eyewitness told the YEP that two gunshots were heard after police in an unmarked car attempted to stop a vehicle.
West Yorkshire Police has since confirmed that public reports of gunshots were wide of the mark.
Chief Inspector Chris Bowen, of Leeds Police, said: “We received a number of calls from members of the public reporting shots being fired in the vicinity and I would like to reassure the sounds were as a result of tactics used in the arrest of these individuals.
“Officers from the local Neighbourhood Policing Team will be will be conducting additional reassurance patrols in the area.”
A eyewitness, who would not be named, said: “I saw two cars on the wrong side of the road. I think it was the police.
“Guys got out and stopped a car and I heard a couple of gunshots. I’m not sure who fired at who.
“I drove on past and then later turned back. When I returned, there was no sign of the vehicles. It was pretty scary and shocking.”