Officers responded at about 11:20 a.m. to a report of a man with a gun near the intersection of Hollywood Boulevard and Cherokee Avenue, an LAPD spokesperson said.
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New photos from the scene show the man pointing an apparent weapon directly at officers. They opened fire, striking him. He later died at a nearby hospital.
When police examined the item, they discovered it was a replica.
Photos from the scene also indicate a knife was recovered.
No officers were injured in the confrontation.
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The shooting occurred less than a block from the Dolby Theatre, where the Oscars are normally presented.
A woman was also injured in crowd chaos that followed the incident.