A New York City parolee was shot and killed by police early Sunday after he brandished a gun in a crowd of people during an altercation, authorities said.

Officers observed a dispute near Nagle Avenue and Dyckman Street in the Inwood neighborhood of Manhattan around 3 a.m., police told reporters at the scene.

The officers commanded the 29-year-old male to drop the gun that he was observed waving around in the crowd, NYPD Chief of Patrol Jeffrey Maddrey said.

Maddrey said that officers repeatedly yelled to the man to drop the gun before firing their weapons.

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NYPD Chief of Patrol Jeffrey Maddrey

NYPD Chief of Patrol Jeffrey Maddrey speaks to reporters at the scene of an officer involved shooting in the Inwood neighborhood of Manhattan early Sunday. (NYPD)

"They discharged multiple rounds striking the suspect with the gun about the body," Maddrey said.

The 29-year-old male was rushed to Harlem Hospital, where he died. Police did not immediately release his identity but said he had "prior contact with police" and was currently on parole.

Nagle Avenue and Dyckman Street

The shooting happened near Nagle Avenue and Dyckman Street in the Inwood neighborhood of Manhattan around 3 a.m., police said. (Google Maps)

A bystander suffered a graze wound but it was unclear who shot him, Maddrey said.

The four officers who discharged their weapons in the incident were treated for tinnitus at a hospital.

suspect's firearm recovered from scene

Police recovered the suspect's firearm from the scene in the Inwood neighborhood of Manhattan. (NYPD)

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The suspect's firearm was recovered at the scene. Police are investigating what caused the disturbance.