Shortly before 5 a.m., officers heard a single gunshot from where the suspect was located on Treasure Island's shoreline. Officers escorted paramedics to the area, where they pronounced the suspect dead, police Sgt. Michael Andraychak said.
Officers initially received a 911 report of a suspect in a stolen vehicle armed with a gun.
Police located the suspect around 11 p.m. in downtown San Francisco, near the intersection of Mason and Bush streets, police said.
Police attempted to stop the suspect vehicle, but the driver failed to pull over and began driving through red lights to avoid police.
The suspect fired a round at the police vehicle, but no officers were injured.
Police pursued the vehicle to the Treasure Island off-ramp from eastbound Interstate Highway 80, where the suspect bailed from the vehicle, ran to the shore and threatened to shoot himself.
A standoff ensued as attempts were made to reason and negotiate with the suspect, police said.
The suspect may have been wanted in connection with a robbery and carjacking that took place on Thursday in the city of Benicia, according to police.
Traffic on and off of the island was shut down shortly before midnight, according to the California Highway Patrol.
Motorists were unable to enter or exit Treasure Island during the standoff. Motorists are expected to be able to get on and off the island this morning.