UPDATE: Police have confirmed that the gunman was shot and killed by officers and that four people are dead in the townhouse, including the gunman, 9 News reports.

Police entered the home after hours of failed attempts to negotiate with the gunman. He wouldn't come out even when tear gassed, the officers said.

Inside, three people were discovered dead, according to police.

The names and ages of the victims have not been released.

EARLIER:

Just months after last year's horrific Aurora movie theater shooting, there's more terrible news from the small Colorado town.

Police say there's an armed man believed to be holding hostages inside a home in Aurora, 9 News reports.

Officers showed up after reports of shots fired were phoned in by neighbors early this morning. One woman inside the home had also escaped and alerted authorities, reporting three lifeless bodies and a gunman, according to 9 News.

The New York Daily News reports that as many as 40 officers, including SWAT teams, are at the home.

Melissa Blasius, a reporter with 9 News who's at the scene, reports that Aurora police radio traffic says at least one person was shot this morning during the hostage situation. She says that she saw a "white puff" come up from the house and heard gunfire.

Aurora Police delivered emergency notifications for residents near the 16000 block of East Ithaca Place, below from Google Maps.