It happened around 5:30 p.m. when officers spotted 29-year-old Spencer Majett in the area of Reach Street and Allegheny Avenue in Kensington.
Police say Majett ran and officers chased him into a narrow pedestrian alleyway between homes along Custer Street.
"While in the rear, there was a confrontation between the individual, Mr. Majett, and two police officers," said Deputy Police Commissioner Frank Vanore.
During the chase, an officer saw the suspect with a gun and shouted a warning, investigators said. Soon after, police say one officer used a Taser, and then a single gunshot was fired.
Both officers fired their weapons, striking Majett in the shoulder.
Detectives initially said the suspect fired at them, but that claim remains under investigation
Majett was wanted for the shooting death of Felicity Vanatta, 23, of Pennsgrove, N.J. She was shot in the chest in the early morning hours of October 8 by a stray bullet allegedly fired by Majett from a half block away, according to investigators.
The October 8 shooting followed a fight outside Steak and Beer in the 2700 block of Kensington Avenue. Soon after the gunfire, police were able to quickly identify Majett as a suspect from surveillance video.
RELATED: Innocent bystander killed by stray bullet from men arguing in Philadelphia's Kensington section
"This is a homicide suspect that we were seeking for several weeks now. He's no longer on the street," Vanore said.
"This is great police work. They're just out, they see somebody they recognize. They do what they're supposed to do: try to stop them. He runs and they affected their arrest and unfortunately, they had to use force to do that," Vanore said.
Police say they'll be looking at officers' body cam video and other video in the area as part of their investigation.
Majett is also facing two counts of attempted murder of a law enforcement officer, two counts of assault on a law enforcement officer, two counts of aggravated assault, and related charges
Both officers involved in the shooting have been on the force for one year. They have been placed on administrative duty pending an internal affairs investigation.