The incident was reported on E. 174th St. and Hoe Avenue in West Farms around 7 p.m.
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Sources say the shooting started after an incident at a Boost Mobile store nearby.
Police were called and when they arrived, they found themselves face to face with an armed man, sources say.
They say the suspect put his hands up, as if to surrender, but then opened fire at officers at close range.
Police then returned fire and believe they hit the suspect once in the arm.
Witnesses reported hearing about a dozen gunshots.
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After the shootout, sources say the suspect ran into a bodega at the corner of 174 Street and Hoe Avenue, and then ran out again and hid under a parked van until cops ran by.
Police believe that he then ran into a building.
Police said no one was in custody, but they do have a bloodhound tracking the suspect.
The gunman's weapon, a pistol, was left at the scene.
Two officers were transported to an area hospital for tinnitus.
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Few other details were released and the investigation is ongoing.
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