According to the Los Angeles County Sheriff's Department, deputies responded to the 2000 block of Santa Fe Avenue just after 12 p.m. regarding a call about a person with a knife.
When they arrived, a victim told deputies the suspect had attacked him with a hatchet.
The suspect was ultimately located near Compton Town Center Plaza.
"As deputies observed the suspect approaching one of the shopping stores still with the hatchet in hand, a deputy involved shooting occurred," read a statement issued by the sheriff's department.
Authorities said the suspect was struck by gunfire and was transported to a local hospital where he later died.
The suspect's identity was not released by the sheriff's department and was described only as a Hispanic man between the 45 and 50 years old.
No deputies were injured during the shooting. The incident remains under investigation.