Police last month had issued a wanted bulletin for Cambridge, also called `Nand'. He was reportedly wanted too for the murder of Detective Sergeant Harry Sharma Kooseram, 37.

Kooseram, of Bladen Hall, East Coast Demerara, was shot six times by a gunman as he was bicycling to work about two months ago.

Police said Cambridge was wanted for murders in Georgetown and along the East Coast Demerara.

Police said that a mobile patrol which was in the area, prior to the armed confrontation at about 15:30 hrs, had seen a "suspicious looking white motor car which attracted their attention". Shortly after, the patrol saw the car parked on a road near a house at Nabaclis, south of the former railway embankment.

According to a Police press release, on approaching the car, the ranks were shot at from the house.

"The ranks returned fire and when it ended, Compton Cambridge was discovered lying on the floor of the house, mortally wounded. He had on a blue colour bullet proof vest", the release said.

Police said three others allegedly escaped in another motor car after abandoning the white car, which has since been seized, taking Cambridge's firearm with them.

The release said investigations were continuing.

Schoolgirl Natasha DeFreitas, 14, was reportedly hit in a shoulder by a bullet during the shootout and was taken to hospital by Policemen.

DeFreitas, who lives next door to the house Cambridge was found in, was said to have been in bed when the shooting started.

Ms. Eileen Benn, 73, who lives in a house behind the one in which Cambridge was shot, was removed by neighbours after she was affected by fumes from tear gas used in the confrontation.

Hundreds of villagers tried to get close to the scene after the shooting, but were restrained by Police and Army patrols.

Uniformed Policemen and soldiers in jeeps also patrolled the roadways in the area.