A police officer was stabbed multiple times before shooting the man accused of attacking him during an altercation in Waywayseecappo First Nation Wednesday night, the province's police watchdog says.

RCMP say the 29-year-old officer with the Manitoba First Nations Police Service was called to a disturbance at the gaming centre in the western Manitoba First Nation at about 10:45 p.m.

An altercation occurred between the officer and several people in the parking lot after he arrived.

The Independent Investigation Unit of Manitoba, which investigates serious incidents involving police, said the officer was arresting a man involved in the disturbance when a second man, 21, began stabbing the officer.

The officer fired his gun and hit the 21-year-old, according to the investigative unit.

RCMP said the man who was shot is currently in hospital in serious but stable condition with a gunshot wound.

Officer recovering

The officer, a seven-year member with the First Nations police service, was treated in hospital for serious injuries and has since been released, RCMP said on Thursday.

"It's one of the phone calls you don't want to get," Manitoba First Nations police Insp. Dave Scott told CBC News.

"I went out there last night and visited with the officer in the hospital. Fortunately he's going to be OK, so we're pretty pleased about that."

Scott said the officer, who is one of four based in Waywayseecappo, is now at home recovering and anticipates he will return to work once he's healed.

Waywayseecappo First Nation is located about 280 kilometres northwest of Winnipeg, near Russell, Man. (Riley Laychuk/CBC)

"From our standpoint, we're pleased our officer did the right thing," said Scott.

He said additional officers went to the community to help the RCMP and the IIU with the investigation.

Residents shaken

Waywayseecappo Chief Murray Clearsky said officers were still at the scene Thursday in the First Nation near Russell, Man., about 280 kilometres northwest of Winnipeg. The gaming centre remained closed.

He said despite the increased police presence, people are still shaken.

"Some of them were scared," said Clearsky. "'What else is going to happen to us, or is it going to affect us at home?' That's what they're worried about, some of the people that I've talked to."

Clearsky believes the two people involved aren't from Waywayseecappo. He said he's working with police and band council to make sure they don't come back.

"Those people are not welcome to our community," he said, adding he'd like to see police resources increased in the First Nation.

RCMP wouldn't confirm where the two men are from, saying it will form part of the investigation.

RCMP are now investigating the stabbing of the officer as per the Provincial Police Services Act, while the IIU is investigating the circumstances around the shooting.

The Independent Investigation Unit is asking for witnesses, or anyone who may have information or video footage of the incident, to contact them at 1-844-667-6060.