Police Chief David O Brown said police have a suspect cornered in a garage and are negotiating with that person. He said the snipers fired upon officers "ambush style."
Brown had said three officers were killed, and police issued a tweet later saying a fourth officer had died.
Brown said snipers shot from "elevated positions" during a protest over two recent fatal police shootings.
The gunfire broke out around 8:45 pm yesterday. Live TV video showed protesters marching along a street in downtown when the shots erupted and the crowd scattered, seeking cover.
Hundreds of people had gathered in Union Square Park in Manhattan and took to the streets to protest the recent police-related shootings of two black men.
The protesters yesterday chanted "The people united, never be divided" and "Hands up don't shoot." Police scrambled to keep up with the crowd as the group left the park and marched up Fifth Avenue.
On Wednesday, a Minnesota officer fatally shot Philando Castile while he was in a car with a woman and a child in a St Paul suburb. The aftermath of the shooting was purportedly livestreamed in a widely shared Facebook video.
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