According to the Essex County Prosecutor's Office, the county sheriff's department was conducting the investigation near West 4th Street and North 9th Street when they attempted to arrest a suspect at about 1:15 p.m.
Prosecutors say the suspect fled on foot, leading to a chase, and as the officers approached the suspect he reached for a gun.
Officers fired two shots, killing the suspect, 22-year old Jose Quinonez of Newark.
A loaded gun was recovered at the scene and suspected narcotics were later found on the man who was shot.
The prosecutor's office says a crowd gathered as the incident unfolded, and authorities contacted members of the Newark Clergy Alliance who responded to the scene to speak with residents and the family and to quell tensions.
The names of the sheriff's officers involved in the shooting have not yet been released. They were taken to the hospital to be evaluated.