The shooting occurred just after 4 a.m. when police responded to a reported robbery at the Knight's Inn on Spring Street, not far from Newark Airport.
Authorities say that the armed suspects confronted police and a shootout ensued. No officers were injured.
One suspect was taken to Trinitas Hospital in traumatic arrest and was pronounced dead upon arrival. The other suspect went to University Hospital in Newark, where he was listed in critical condition.
Further details on the shooting were not immediately disclosed.