STORY: Officers responding to a report of an armed man in the area fired after the gunman confronted them, Toronto Police Chief James Ramer said at a media briefing. He declined to give further details, citing an ongoing investigation.
Earlier on Twitter, Toronto police said officers had fired and the suspect, described as a male in his late teens or early 20s, was injured.
The scene where the man was shot by Toronto police is about 130 meters (426 ft) from the William G Davis Junior Public School, which was the last of the five schools to emerge from a lockdown.
Local resident Patrick Desrock was nearby when the incident happened:
"I heard from another source that the police were looking for someone on a bicycle with a shotgun, or hunting rifle, (with a) tan jacket" he said. "So I dropped my son off at school and I came down to the area to see what was going on. I found out that they (police) shot the guy right over here."
All the school lockdowns were lifted after a couple hours, according to the Toronto District School Board.
The incident occurred days after a gunman in Texas killed 19 children and two teachers at an elementary school. The Texas shooting fed concern about gun violence worldwide.