Multiple people were shot, including a woman who died later in hospital, at an event being held in Chicago to remember a man who died four years ago in a car crash.

A large group of people had gathered at 1am to mark the man’s fatal crash when there was an altercation and shots rang out, according to deputy chief Adnardo Gutierrez of the Chicago Police Department.

Police were on the scene within minutes, he added.

Seven people were wounded and one of them, a 25-year-old woman, was later pronounced dead at Mount Sinai hospital, Mr Gutierrez said.

The shooting victims were hospitalised with a range of injuries; a 29-year-old man who was hit in the chest remains in a critical condition.

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“They were out there celebrating and then something happened and a verbal altercation occurred and somebody began shooting, or multiple people began shooting,” Mr Gutierrez said.

It’s still under investigation how many people opened fire, but Mr Gutierrez said the gunshots were fired by a person or persons who were taking part in the remembrance. No one was being held in custody as of Sunday morning.

He said a witness had told officers an altercation occurred before the shooting, which happened as the group was in a street in the Austin neighbourhood on Chicago’s West Side.

The five other victims were aged between 17 and 29, and were in stable condition in hospital, the Chicago Sun-Times reported.

Mr Gutierrez said detectives were still working to find and interview witnesses. He urged anyone with information about the shooting to contact police.