The 17-year-old was struck on Prospect Avenue, near Boston Road, at around 11:20 a.m.
He was rushed to Lincoln Hospital, where he later died.
Police are investigating whether officers fired the shots that hit the man. The reason of the shooting is under investigation.
Police Commissioner Ray Kelly said the incident appears to involve narcotics officers and occurred during a buy-and-bust drug operation.
The teen allegedly opened fire on the officers, and they shot back, hitting him. Police say a gun belong to the shot man was recovered at the scene. The officers were not injured in the gunfire.