The incident happened along North 21st Street around 10:00 p.m.
Police say an occupant of a car reacted in an suspicious fashion as the officer approached the car. When the officer got to the car, the driver sped off.
It is not clear if the driver and the officer spoke before the driver drove off.
The officer then gave chase and opened fire during a brief pursuit.
An officer assist was called and police from neighboring districts responded, but the suspect got away.
Police scoured the area and spotted a possible suspect with a woman in a car. That car was stopped at 21st and Wyncote and the two were taken into custody to be questioned.
It is not believed that anyone was shot.
About a three to four block stretch of North 21st Street was cordoned off during the incident.
Police believe the suspect fired upon officers at some point in the altercation and are scouring the area for shell casings
Internal Affairs is investigating.