Unnamed sources have told multiple media outlets that one officer died and another is in hospital with injuries that are not believed to be life-threatening.
Edmonton police were not immediately confirming the officer's death but sent out a Tweet: "We appreciate all of your words of support and sympathy at this time."
Chaos unfolded in the residential neighbourhood Monday evening when residents reported hearing gunfire.
A man named Ryan told radio station CHED he is the neighbour of the shooter and was there when everything happened.
"I was on my back deck, saw what I thought was a routine arrest," he said. "They had six officers come over to do a routine arrest. They didn't know if he had any weapons in the house, and when they went to breach the door that's when the fire started.
"He did fire on two officers, hit one in the back. I helped the one officer, got him out to the side, got him into the car. The bullet was stopped by his vest, but it did pierce through his skin.
One woman said she saw officers put a man with his hands handcuffed behind his back into a squad car.
Bystander Angela Wall told CTV News she was watching TV when the incident began.
"I was at home in my living room ... and I heard like, five bangs go off, and I thought nothing off it," bystander Angela Wall told CTV Edmonton. "I thought it was just basically someone working on their roof. Clearly that was not what it was."
A massive police presence quickly gathered, with dozens of police cars, a police helicopter and three ambulances on scene.
Smoke also started billowing from a home in the neighbourhood and police evacuated several homes.
Fire trucks stood at the ready to move in once the scene was contained and safe enough for them to move in, and before long, they had extinguished the blaze. However, the smell of black smoke hung in the air for hours.
At one point, two ambulances left the scene with a police escort.
Throughout the turmoil, police continually urged onlookers to move to a safer area or stay in their homes.
Const. Brendan Power sent out a Tweet pleading with residents in the area of 184 St. and 64 Ave. to move back, telling them they were "not safe to be observing anywhere near there."
He also caution media and onlookers: "Please don't post pictures of our officers, other emergency crews or their locations. You're putting them at risk."
This is the second police officer to be shot and killed in the Edmonton area this year.
RCMP Const. David Wynn, 42, died in January at a casino in St. Albert, north of Edmonton, while trying to track down the driver of a stolen truck. Auxiliary Constable Derek Bond was seriously injured but survived.
The shooter, Shawn Maxwell Rehn, was out on bail facing 15 charges, including escaping lawful custody, possession of a prohibited firearm and failure to show up to a previous bail hearing on the charges.
Last month and Edmonton police officer was shot and wounded during an impaired driving stop. The suspect in that shooting was killed.
-- With files from CHED, CTV Edmonton