Officers were on routine patrol in the East Garfield Park neighbourhood on the city's west side when they heard gunshots and began chasing a 34-year-old man, police said.
"Officers initiated a foot pursuit during which the offender ran to an alley and confronted them with a weapon. As a result of this action, one of the pursuing officers discharged his weapon striking the offender multiple times," police said in a statement.
Officers requested medical aid for the suspect, police said. The man was later pronounced dead at a hospital, the statement said.
No officers were injured.
More From This Section
The Independent Police Review Authority is investigating the incident, police said. It said the officer who fired the shots will be placed on administrative duties for 30 days.
Three people were found shot in the area where the officers initially heard the gunshots, police said. A 51-year-old female sustained a gunshot wound to her chest and was hospitalised in stable condition. A man, 30, who was shot in the buttocks was listed in stable condition. A 21-year-old woman was grazed on her left leg and listed in good condition.
The report found police had violated the constitutional rights of residents for years, including by frequently using excessive force, shooting at people who did not pose imminent threats and using stun guns on others only because they refused to follow commands.