Police were called to the house in the early hours of Saturday morning following alerts the man was in an agitated state.

A statement from police said the Taser was used as an "appropriate and proportionate tactical option" to bring the situation to a safe end.

The man was later sectioned under the Mental Health Act and the children were returned to a family member unharmed.

It is the first time the controversial gun, which can deliver a 50,000-volt shock to targets, has been used in Northern Ireland.

The Tasers were purchased by the PSNI earlier this year following authorisation from the Secretary of State for 12 units. According to police only specially trained officers can use them.

An investigation into the incident resulting in the use of the gun is now being conducted by the Police Ombudsman of Northern Ireland.

Chairman of the Policing Board, Professor Sir Desmond Rea, has requested a report from the Chief Constable on the use of the weapon on Saturday.

He said: "This report will be brought to the meeting of the Human Rights and Professional Standards Committee on Wednesday 27th August."

A police spokeswoman confirmed the weapon had been used to deal with a domestic related incident.

She said: "A Taser unit was discharged by specialist firearms officers during the incident, as an appropriate and proportionate tactical option, to bring the matter to a safe conclusion. At around 6.50am, one 37-year-old man was arrested and was subsequently detained under the Mental Health Act. The children were safely returned to a family member."

Tasers have been used in Britain since 2003. Prior to the introduction of the weapons in Northern Ireland in January 2008, the Human Rights Commission claimed they could potentially violate Articles two and three of the European Convention on Human Rights.

Sinn Féin's Martina Anderson said her party was opposed to Tasers. She added: "I am also concerned that Derry appears to be the testing ground for new police weaponry. As with many previous additions to the police armoury in the North the first instance of use of the Taser has occurred in Derry."

The SDLP's Mark Durkan said his party would await the Police Ombudsman's report into the actions of the officers who made the decision to use the Taser.

He added: "However, our concern about the introduction of Tasers still stands."

A debate on the use of Tasers has been tabled for a Northern Ireland Policing Board meeting on Thursday, September 4.