Police said the incident occurred just south of Wrightwood Park in the 2500 block of N Bosworth, around 11:45 a.m.
The Chicago Police Department Twitter page did not give any details but instructed people to stay away from the area for the time being.
According to officials, a man had barricaded himself inside the North Side apartment and held a woman at knifepoint.
SWAT team responds to hostage situation in Lincoln Park
The man was taken into custody without further incident. Both were transported to local hospitals.