A second person has died after a gunman shot 14 people in Toronto’s Greektown area.

Ontario province’s special investigations unit confirmed three people are dead following the Danforth Street attack, including the gunman.

Police located the 29-year-old suspect about three blocks away from the scene and exchanged fire. The man was found dead back on Danforth Street after fleeing.

The scene of the shooting
A police officer escorts a civilian away from the scene (AP)

It is not yet clear whether the man killed himself or died as a result of his injuries after being shot by police.

Officers will determine how the man died and whether there was any police wrongdoing.

The unit is automatically called in to investigate all deaths and serious injuries where police are involved.

Witnesses said they heard 20 to 30 shots being fired.

Canada Toronto Shooting
Police chief Mark Saunders and Toronto mayor John Tory speak to the media following the attack (Christopher Katsarov/AP)

Police chief Mark Saunders said the shooting was not random and terrorism had not been ruled out.

Toronto police tweeted that the shooting occurred in the Danforth and Logan avenues area of Greektown, a busy residential area with restaurants and cafes.

Mr Saunders said the gunman died after exchanging gunfire with police.

John Tulloch said he and his brother had just got out of their car when he heard about 20 to 30 gunshots.

“We just ran. We saw people starting to run so we just ran,” he said.

An army of police, paramedics and other emergency personnel soon descended on the scene, while area residents, some in pyjamas, emerged from their homes to see what was happening.

Toronto councillor Paula Fletcher told CP24 she heard that the gunman was emotionally disturbed.

Canada Toronto Shooting
Tactical police officers walk along Danforth Avenue (Frank Gunn/AP)

“It’s not gang related. It looks like someone who is very disturbed,” Ms Fletcher said.

Councillor Mary Fragedakis also said she heard the gunman was disturbed.

Ms Fletcher said for this to happen in an area where families gather for dinner is a tragedy.

Mass shootings are rare in Canada’s largest city.

“We were so use to living in a city where these things didn’t happen,” Toronto mayor John Tory said.

“But there are things that happen nowadays and they are just unspeakable.”

This past weekend Toronto police deployed dozens of additional officers to deal with a recent spike in gun violence in the city.

Mr Tory said the city has a gun problem.

“Guns are too readily available to too many people,” Mr Tory said.