Andre Sterling, 35, was wanted in Massachusetts for the 20 November shooting of a state trooper, during a traffic stop.
Police say the bullet went through the hand of 28-year-old Trooper John Lennon and struck his bulletproof vest near his shoulder.
The Jamaican-born suspect was facing charges of armed assault with intent to murder and weapons charges. He was also wanted in Wyoming on narcotics charges.
In the early hours of Friday police in New York searched the Wakefield district searching for Sterling, who was described as "armed and dangerous".
The marshalls had information that Sterling was inside and were let in by a resident, while Massachusetts state troopers encircled the building.
Sterling came out of a back room and started shooting.
A gun battle ensued around 5:30am, and Sterling was killed.
BREAKING: 3 U.S. Marshalls injured in the Bronx, at least 1 shot after attempting to issue a warrant. Police sources say 1 suspect was shot dead at the scene and another in custody at hospital. Latest on @CBSNewYork pic.twitter.com/GqkCDSG3TM
— John Dias (@JohnBDias) December 4, 2020
A second suspect, a resident of the apartment, was also taken to Jacobi Hospital for treatment. He suffered minor injuries and was not injured in the gunfire.
The two shot US marshalls are also expected to recover.
One was shot in the arm and leg, the other wounded in the leg. The NYPD detective suffered a leg injury but was not wounded by gunfire, officials said.
A Glock 9mm handgun was recovered at the scene. Ballistics will determine if it was also the weapon used in the Massachusetts shooting.