Las Vegas police said the gunman in a fatal shooting on the Strip who barricaded himself inside a public bus on Saturday surrendered peacefully after shutting down the busy tourism corridor for hours.

The standoff began at about 11am with a shooting that killed one person and injured another. It happened on a double-decker bus on Las Vegas Boulevard near the Cosmopolitan hotel-casino.

University Medical Center spokeswoman Danita Cohen said two people were taken to the hospital after the shooting. She said one died and the other was in fair condition. Police said that person suffered minor injuries.

Las Vegas police officer Larry Hadfield said just before 3.30pm that the man had a handgun and surrendered without incident. Police did not open fire. Crisis negotiators, robots and armored vehicles were on the scene.

Police said they believe the armed man on the bus was the only suspect and that they had ruled out terrorism or any relationship to an earlier robbery nearby that shut down a part of the Bellagio hotel-casino.

Hadfield said the casino properties in the area had been cooperating by keeping people from exiting through their front doors on to the Strip.