The Independent Police Complaints Commission (IPCC), which has been called in to investigate, said it understood the dead male had been shot by police, adding that the officer had been shot and wounded.
An IPCC spokesman said: ''We do not know the order the shots were fired.
''We understand the officer was shot first before the male was shot.''
He said the incident, which happened at 6.15pm tonight, had been referred to the IPCC by the Metropolitan Police professional standards department.
He said independent investigators had been deployed to the scene in Ferry Lane, Tottenham Hale.
A Scotland Yard spokesman added: ''One male was pronounced dead at the scene and one officer was taken to hospital.''
"The Directorate of Professional Standards and the IPCC has been informed."
A waitress at the Ferry Boat Inn, who did not wish to be named, said the incident happened a few minutes walk away from Tottenham Hale Tube station.
She said: "One man came in and he said that he saw police trying to pull some clothes off a man who was bleeding."
Another worker said there were "lots of cars" around the scene. One local resident, who did not wish to be named, said her mother saw a body in Ferry Lane.
The woman, who lives on the Ferry Lane estate, said her mother, also from the estate, told her the shooting took place next to a bus stop "at the apex of the bridge" in Ferry Lane.
Police have taped off a large area, leaving people unable to get home.
Michalis Chatziantouiou, 24, of Emily Bowes Court, said he entered a supermarket near Tottenham Hale station at around 6pm.
When he left the shop 20 minutes later the whole area was taped off, he said.
"We can't go home - police said they are taping the area off for five hours," he said. Local resident David Akinsanya came upon the scene moments after the incident.
He was told by a witness that a police officer had shouted to the man to stop "a couple of times", but the man had not heeded the warning.
The witness, who lives next to the spot where it happened, then heard four shots ring out, Mr Akinsanya, 46, said.
"There are lots of helicopters and sirens all over the place," he added. "There was also a surveillance van on the corner where this happened a couple of times earlier this week."
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