A man has died after police officers were involved in a shooting in the city's northwest, the province's police watchdog says.

The Special Investigations Unit says the 30-year-old was pronounced dead outside a Best Western Hotel in the Finch Avenue West and Norfinch Drive area.

Toronto police say they were first called to the area around 12:15 p.m. for reports of a male in a car armed with a gun and a knife.

The SIU says police arrived to find "the vehicle of interest," and that as an officer came out of his vehicle, the man came out of his too.

"There was interaction and the officer disrcharged his firearm, resulting in the man being struck."

Police initially said one person was shot and taken to hospital via emergency run. Paramedics said they did not transport anyone from the scene.

Four investigators and three forensic investigators have since been assigned to the case. A subject officer and three witness officers have also been designated, the SIU says.

A post-mortem exam will take place Friday morning.

Marty Wilkins told CBC News he was inside the hotel's front lobby working on some installations at the time of the incident. He saw what he believed was a plainclothes officer with his gun drawn, facing downward.

Wilkins didn't see a victim or hear a gunshot, but said within seconds, about 20 police officers were at the scene.

He believed the man pointing the gun was an officer because it appeared the officers who arrived were working with him.

"They came from everywhere. The police station is next door," said Wilkins.

Ontario's Special Investigations Unit looks into incidents involving the police that have resulted in serious injury, death or allegations of sexual assault.

Anyone with information is asked to contact the SIU at 1-800-787-8529. Video footage can also be shared with the SIU on its website.