The Toronto Police Service is investigating after gunfire broke out Saturday night at a large Latin street festival in Midtown Toronto, leaving at least two people dead and four others wounded.

It is unclear what led to the shooting, and authorities said suspect(s) are still "outstanding." No arrests have been made as of Saturday evening, police said. 

Toronto Police Deputy Chief Frank Barredo said during a news conference there seemed to be an "exchange of gunfire" between two individuals targeting each other.

"This is a very chaotic scene," he said. "I think we had something in the neighborhood of 13,000 people participating in this festival."

Police initially described the incident as an active shooter situation before later determining that was not the case.

"There was some concern of an active shooter. That turned out not to be the case," Barredo said.

Barredo said authorities were managing three separate crime scenes connected to the shooting. Two firearms have been recovered, he added.

Canadian Prime Minister Mark Carney said he was "horrified" by the shooting.

"My prayers are with the families grieving their loved ones, those who are in critical condition, and everyone who has been affected by this horrific event," he said in a statement.

"My thanks to the police officers and other first responders whose courage and fast action prevented further tragedy," he continued. "Police have my full support as they work to apprehend the perpetrators and bring them to justice.

Following the shooting, the Toronto Transit Commission suspended train stops at the nearby St. Clair West station on Line 1 Yonge-University due to what officials described as a "security incident."

Regular transit service has since resumed.

Authorities urged the public to avoid the area and follow all directives from police at the scene.

The TD Salsa on St. Clair Festival, Toronto’s biggest Latin culture celebration, was celebrating its 22nd annual event in Toronto's Hillcrest Village.

The Toronto Police Service told Fox News Digital no further information is available.