The situation began around 3 p.m. Tuesday as Atlantic City officers were serving a search warrant, the mayor said.
Chopper 6 was overhead as law enforcement swarmed the neighborhood near the 100 block of North Florida Avenue.
Mayor Small said both officers were taken to an area hospital and are listed in stable condition.
"I just wanted to say that my thoughts and prayers go out to the two officers, their families, and the fine men and women in blue of the Atlantic City Police Department," Small said during an interview with Action News.
Chopper 6 overhead after 2 officers shot, suspect dead in AC
Officials said a male suspect was shot during the incident and later died. The individual has not been identified.
Small said that as of his last update, the suspect's body remained inside a nearby residence while investigators processed the scene.
It's still unclear what led up to the shooting.
Small said, "Thank God, that one of the officers is wearing a helmet," but he declined to elaborate on further injuries to the officers.
Police are urging residents to avoid the area as the investigation continues.
Stay with Action News as we continue to follow this developing story.