The incident occurred in Jharna Para Jor Deba area in the early hours of Wednesday, said Double Mooring Police Inspector (Investigation) Zahir Hossain.
The dead man has been identified as 32-year-old Jashim Uddin Raju, a resident of Jharna Para area. He had been named in at least 14 cases, including the murder of a policeman.
Raju stabbed his three-year-old nephew in the neck and fled the scene following a dispute with his younger brother’s wife on Tuesday, Inspector Zahir told bdnews24.com.
An injured Raju was rushed to Chattogram Medical College Hospital where the on-duty doctor declared him dead, said Zahir.
A number of police personnel were injured in the incident, he said.
A weapon, a round of ammunition, four bullet shells, a knife and 875 yaba tablets were later recovered from the spot, police said.