Minneapolis police chief Janee Harteau has resigned at the request of the city’s mayor, who said she and the community had lost confidence in her following the fatal police shooting of an unarmed Australian woman.

The death of Sydney native Justine Damond, 40, from a single gunshot wound to the abdomen fired through the open window of a police patrol car, has outraged her family members and the Australian public. Australian Prime Minister Malcolm Turnbull has called it “shocking” and “inexplicable”.

Mayor Betsy Hodges said in a written statement that she and Harteau agreed on Friday that Harteau would step aside.

A protester holds a sign as she participates in a march against police violence following the fatal shooting by an officer of unarmed Australian woman Justine Damond (AP)

“I’ve lost confidence in the Chief’s ability to lead us further – and from the many conversations I’ve had with people around our city, especially this week, it is clear that she has lost the confidence of the people of Minneapolis as well,” Ms Hodges said in the statement.

Ms Damond, who was living in Minneapolis and engaged to be married, had called police about a possible sexual assault in her neighborhood just before midnight last Saturday. She was shot as she approached the driver’s side of Mohamed Noor’s and Matthew Harrity’s patrol car.

Ms Harteau’s resignation came a day after she told reporters during her first news conference following Ms Damond’s death that the shooting violated department training and procedures and that the victim “didn’t have to die.”

“Last Saturday’s tragedy, as well as some other recent incidents, have caused me to engage in deep reflection,” she said in a statement. “Despite the MPD’s many accomplishments under my leadership over these years and my love for the city, I have to put the communities we serve first.”

According to the Minnesota Bureau of Criminal Apprehension, Mr Harrity told investigators that Ms Damond approached the squad car immediately after he was startled by a loud noise and that his colleague Mr Noor, who was in the passenger seat, fired his weapon through the open driver’s-side window, striking Ms Damond.

Mr Noor has refused to be interviewed by the agency, which is conducting the investigation.

Mohamed Noor, a Somali-American, has been identified by his attorney as the officer who fatally shot Justine Damond (City of Minneapolis via AP)

The police department said on Friday that bureau investigators had interviewed a person who was bicycling in the area immediately before the shooting and watched as the officers provided medical assistance to Ms Damond. No further details were provided.

Ms Hodges said Assistant Chief Medaria Arradondo would become police chief, and the department’s website on Friday evening had been updated to reflect it.

Ms Harteau, a 30-year veteran of the department, was the first woman to lead it and is also openly gay. She was criticised for the department’s handling of the fatal 2015 shooting of 24-year-old black man Jamar Clark, who was unarmed.

The shooting of Clark touched off protests in Minneapolis at a time of fierce national debate over the use of excessive force by police, especially against black people.

Hundreds of people also took to the streets of Minneapolis to protest Damond’s shooting.