Police say the trouble began just after midnight when two officers approached three people on the 9200 block of Birch Street.
Police spokeswoman Johnna Watson says one man in the group, believed to be carrying a concealed weapon, ran from the group.
As the officers chased the suspect, he was shot in exchange gunfire with the officers.
The suspect died after being taken to a local hospital. One of the officers suffered what police are describing as a non-life threatening gunshot.
Police have not released the names of the suspect or of the officers involved.
The shooting is being investigated by police and the Alameda County district attorney's office.