A bystander was also fatally shot, according to Houston police spokesman John Cannon.
The officer, with a police department from the Houston enclave of Bellaire, died at a hospital, Cannon said. He did not release the names of the officer or the bystander.
Cannon said the incident began just before 9 a.m. when the officer tried to pull over the suspect's vehicle. The driver instead sped away and the officer chased after him.
"During the pursuit apparently the suspect's vehicle struck a white pick-up truck," Cannon said.
After the crash, the officer approached the vehicle and the suspect opened fire. The officer fired back. The second man who was killed worked in a body shop near where the shooting took place, Cannon said.
Other police officers meanwhile captured the suspect, who also was shot, Cannon said. He was taken to a hospital where he was in critical condition.
The Houston police department and the Harris County District Attorney's office are investigating, Cannon said.
(Copyright 2012 by The Associated Press. All Rights Reserved.)