Michigan State Police troopers fatally shot a gunman fleeing a downtown nightclub following reports of an early New Year's Day shooting inside that left two people injured.

The two troopers were conducting a traffic stop near Lady Godiva's Showgirls about 1:20 a.m. Thursday when people ran outside the southwest Michigan club, saying a shooting had taken place, police said.

The troopers exchanged gunfire with the man as he fled the club, police said, and he collapsed and died nearby. Police said the man, identified as Chucky Lee Jackson, 29, of Grand Rapids, was armed with a handgun.

Michigan State Police said Jackson fired first and the troopers from the Rockford Post returned fire, striking him at least once.

Nick Moreau, who was waiting with a friend for a breakfast buffet at the club, said he got on the ground when he heard multiple shots fired.

"I'm glad I'm still alive," Moreau told The Grand Rapids Press outside of the club shortly after the shooting.

Two people from inside the club were taken to area hospitals, where police said one was in critical condition and the other was in stable condition.

A message seeking comment was left at the club, where a recording said a New Year's party had been planned.

Grand Rapids police, who also responded to the shooting, were investigating along with state police.

Also early Thursday, police said a bullet apparently fired into the air in celebration of the new year wounded a man in downtown Grand Rapids. The man was taken to a hospital with what was described as minor injuries.