Police in Barcelona's La Rambla have shot dead a gunman and have launched a manhunt for one of his accomplices following a shootout in front of a four-star hotel on Tuesday afternoon. Several people were injured in the attack, reports said.

Eyewitnesses saw two gunmen, opening fire at two men sitting near Silken Hotel. La Vanguardia reported that the two gunmen wore masks and fired several rounds of bullets.

According to an Abc.es report, one person sustained bullet injuries, while another was wounded by broken glass. The condition of the one of the injured is said to be serious.

A report noted that two men were sitting near a bench outside Silken Hotel La Rambla, when they were attacked. One of the victims, who sustained gunshot injuries escaped into a children's shopping store, while another crashed into the hotel through broken glass, El Singular reported.

The victims are British and Belgian nationals.

The incident took place on the intersection between the La Rambla and Pinto Fortuny streets near Silken Hotel. The area is popular with the foreign tourists.

Police have cordoned off the area and have launched a massive manhunt in the city, which is the capital of Spain's autonomous region of Catalonia. El Pais reported that the police are looking for a 'number of suspects' involved in the shooting.

The cause of shooting is still unclear.

A report in El Mundo stated that prior to the shooting, a third accomplice had attempted robbing foreign tourists. It is also claimed that the gunmen tried to kidnap a hotel guest. 

Some witnesses told local radio Cadena Ser that a quarrel between two men outside the hotel ended in an exchange of gunfire. While another source told El Pais that the La Rambla shooting had the markings of an organised hit.

The Spanish police, in the meantime, have ruled the shooting as a terrorist attack.

More Details Awaited...