HOUSTON -- A Houston police officer was killed during a shootout in the line of duty that also left a suspect dead, KPRC Local 2 reported Wednesday.

Houston police said four people met with undercover police officers to purchase stolen TVs in the parking lot of a drug store on Bellaire Boulevard near Hillcroft Street at about 9 p.m. Tuesday.

Investigators said things went bad when the money was exchanged.

"Right after the transaction was made, the undercover officer walks around to the front of the rental truck," HPD spokesman Victor Senties said. "The suspect follows him and he draws a weapon."

Police said Senior Officer Henry Canales ended up exchanging gunfire with the man.

"Officer Canales drops to the ground," Senties said. "The suspect goes around to the back of that rental truck, he also falls to the ground."

Police said a second undercover officer, Officer R. Lopez, went to help Canales. Lopez was handcuffing the shooter when more shots were fired, investigators said.

"As he's doing that (handcuffing), the suspect reaches back and he fires, we believe at least two more times, toward that second undercover officer," Senties said. "He's not hit. That officer fires his weapon at least once. The suspect was pronounced dead at the scene."

Canales, 42, was taken to Ben Taub Hospital, where he died.

Houston Police Chief Harold Hurtt said Canales suffered one gunshot wound.

Dozens of police officers gathered at the hospital to support Canales' family and each other.

"Henry's a good man," Lt. Scott Dombrowski said. "Dedicated, loving family, loved his job. He loved what he did and was very good at it."

Canales had been with HPD since 1993 and assigned to the auto theft division since 2002. He had also worked in northeast patrol.

"This is probably the most difficult time in any chief's tenure, when we lose one of our officers in the line of duty and then have to share in the grief with his family, his loved ones and other members of our organization," Hurtt said.

Houston Mayor Bill White and Harris County Sheriff Adrian Garcia also went to the hospital to show their support.

Canales leaves behind a wife, a 17-year-old daughter, Stephanie, and 15-year-old son, Henry Jr. The family built and raced hot rods together.

"He was a devout father, a devout husband and just loved being with his family, and being with his family at the racetrack," said Seth Angel, the manager of Houston Raceway Park.

Canales was a volunteer with Beat the Heat, a program that teaches kids to race at the raceway instead of illegally on the streets.

"Every time they were out here, Henry was with them. (He was) an awesome guy, great family. It's just a tragedy," Angel said.

A steady stream of police officers consoled the family at their home.

White was with Canales' family when they were told about his death.

"It's not the easiest, but it is perhaps one of the most memorable, in a sense, when the mayor is in the room when an adoring wife and devoted children learn of the passing of their father," White said. "Officer Canales' son, when I asked him in those moments to describe his dad in his words, said that he was always somebody who tried to serve other people and do something for others every day," White said.

Hurtt said Canales had a big heart.

"He cared a lot about the people that he worked with and cared a lot about the citizens of the city of Houston," Hurtt said. "He was a hero to his family."

"A great guy, a very good undercover officer -- put a lot of bad guys in jail in his career," said Gary Blankenship, the president of the Houston Police Officers' Union.

Lopez was not injured. He is a 24-year veteran of the Houston Police Department.

The other three people involved in the transaction were taken into custody. Their names have not been released.