Another woman reported seeing police lights flashing through her window after 11pm.
Woman said she saw police lights
Police said in a statement this morning that they were alerted after a report that the man was later seen carrying a firearm and driving south out of Napier.
Hawke's Bay officers including Armed Offenders Squad staff set up road blocks and tracked the man for some time during which he shot at police.
He was stopped in central Clive about 11.10pm and there was an exchange of fire after he threatened officers.
Immediate medical attention was given to the wounded man by police and paramedics called to the scene.
A section of State Highway 2 in central Clive will stay closed today and diversions put in place for road users. This is to allow for a detailed scene examination to take place.
People are asked to use the alternative Farndon Road and Hawke's Bay Expressway.
Investigators and forensic specialists will also be at a property in The Esplanade, Westshore, where the body of a woman was found shortly after 9pm.
Superintendent Sandra Venables, Eastern Police District Commander, described last night's operation as difficult, dangerous and fast moving.
"We're unable to release the name of the victim at this stage but our thoughts are with the families caught up in this tragic event."
Police are urging commuters and other members of the public to avoid central Clive this morning as a scene examination gets under way following an armed incident last night.
Eastern District Police Command Centre said people are asked to use alternative routes including Farndon Road and the Hawke's Bay Expressway.
The armed call out is over but Clive's main street and a section of SH2 remains closed while police undertake a detailed scene exmination.
