It happened in Lawndale on the West Side in the 1200-block of S. Independence Blvd.
Officers say the boy was shooting from a bicycle.
They say when they pursued, he shot at them, and they returned fire killing him.
According to police, the boy has been identified as Tywon Jones, 16. He was prounounced dead at Mt. Sinai Hospital at 4:51 p.m. Sunday.
Some residents in the area say police shot the boy in the back.
Police say a handgun was recovered at the scene.
No innocent bystanders were hit by the gunfire.