It is understood that the PSNI have arrested three people in Co Armagh and recovered the two ATMs stolen in Dundalk overnight.
The raid on the AIB and Ulster Bank ATMs on Clanbrassil Street occurred at around 3.30am.
Two vehicles were set alight at Dundalk Garda Station to hinder the Garda response.
The raiders were intercepted by members of the Garda Armed Support Unit and following a traffic pursuit crossed the border into Northern Ireland.
LMFM reported that a car was subsequently found burnt out at Deerpark in Bellurgan.
An Garda Siochana say they are working very closely with colleagues in the PSNI. As this is an ongoing operation no further information is being made available at this time.