The suspect was spotted at the intersection of Market Street and Carroll Street just after 12:15 a.m. Wednesday.
Police officers were responding to a report of at least one armed robbery on Ellison Street nearby. A cell phone was stolen.
The unidentified man was chased down and arrested by Paterson Police Department officers. Shots were fired during the pursuit, but no one was injured by gunfire.
The suspect was rushed by officers to St. Joseph's Regional Medical Center with unknown injuries.
The officers involved also were taken to the hospital with unknown injuries.
The suspect's gun was located nearby, police said, and officers closed the area to search for evidence.