A patient being treated at a psychiatric hospital in Illinois has reportedly been shot and killed by police after holding a nurse hostage in a stand-off that lasted for several hours.

A SWAT team killed the patient, named as Tywon Salters, 21, a prison inmate who was being treated at the Delnor Hospital in the Chicago suburb of Geneva.

The armed officers reportedly moved in after negotiations broke down, according to CNN.

Kane had taken the member of staff hostage after grabbing a gun from a police officer after he was brought to the hospital for treatment.

Hostage negotiators and the SWAT team rushed to the hospital when the incident began at around 1pm local time, according to Kane County Sheriff’s spokesman Patrick Gengler.

The inmate was believed to still be holding the gun on a female hospital employee at about 4pm local time, with the hospital placed on lock down.

Mr Gengler said Salters was being held on charges related to a stolen vehicle and had been in the custody of the county jail since 11 April.

The prisoner was transferred to the hospital on Monday, but Mr Gengler said he could not release details as to why he was hospitalised at this stage.