The suspect was transported to UCI Medical Center. He was pronounced dead at about 4 p.m.
No officers were injured in the shooting.
According to Sgt. Rick Martinez of the Anaheim Police Department, the officers had received information that a known former parolee was in the area, and was reportedly armed.
The officers followed the suspect into the parking lot, blocked his vehicle and gunfire was exchanged.
Authorities were still trying to figure out what prompted the shooting.
"As to what led up to the shooting, we do not specifically know, but I can tell you right now that the man was armed. We have recovered a handgun there at the vehicles," said Anaheim Police Sgt. Rick Martinez.
"We're waiting for detectives so we can get more information as to what led up and why did this person engage officers or confront them with a handgun, and why was he armed in the first place," he added.
The Anaheim Police Department told Eyewitness News it was the suspect that started shooting at the officers, and the officers then fired back.
An investigation was under way.