UPDATE: All suspects in custody following deadly shootout

One person died, one was injured and two others are in custody Friday following a shootout with police, according to the Ottumwa Police Department.

Ottumwa police Chief Tom McAndrew confirmed to KCCI that police received reports of a shooting with injury around 1:44 p.m.

McAndrew said that as authorities traveled to the scene of the shooting, the police department received a call saying three people were spotted running away from the area in the direction of Liberty Middle School

They were located near the back of the school, where one person opened fire with an assault rifle, according to McAndrew.

McAndrew said a shootout ensued between the three people and police and that one of the suspects was killed by police gunfire.

Ottumwa residents in the neighborhood were advised to stay inside while police searched for a fourth suspect who escaped. He was captured around 8:00 pm near a farm field.

A neighbor, who asked to remain anonymous, told KCCI that he saw heavily armed officers searching the area and "snipers" on the roofs of homes. The Iowa State Patrol searched for the suspect from an airplane.