It happened after 7:30 p.m. at 22nd and Glenwood Streets in North Philadelphia.
Police say a 22nd District officer was trying to stop a vehicle at the intersection when the driver hit another vehicle, then struck a building.
A 19-year-old man, identified by his sister as Aaron McDaniels, jumped out of the front passenger side of the vehicle.
Police say McDaniels had a gun in his hand and pointed the weapon at an officer.
The officer opened fire, hitting McDaniels several times in the torso.
He was rushed to Temple University Hospital, where he was pronounced dead at 7:56 p.m.
Police say two guns were recovered from the suspect: a semi-automatic handgun and a revolver.
Police took the driver of the vehicle into custody for questioning.
No police officers were injured.
This incident is being investigated by Internal Affairs and the District Attorney's Office.
The officer involved is being placed on administrative duty pending the outcome of the investigation.