At an Auckland press conference, attended by Police Commissioner Howard Broad, police said the dead officer was Sergeant Don Wilkinson, 46, who had been in the police force for nine years.
A 32-year-old man had been charged with his murder and second man charged with assault.
Mr Wilkinson was shot dead and another police officer wounded while they were engaged in an undercover drugs operation in Mangere East early today.
The wounded officer was to undergo surgery at Middlemore Hospital but his injuries were not believed to be life threatening.
The two unarmed policemen were fitting a tracking device to a car outside a house in Hain Avenue suspected of being a clandestine P lab when they were disturbed by the occupants.
They fled on foot but were chased by the occupants in a car and shot about 75 metres along the street.
Police said today the officers were part of a covert police operation targeting a suspected methamphetamine operation.
Police had earlier obtained a warrant from Manukau District Court to install a tracking device in a vehicle at the house.
Superintendent Ted Cox, from the Auckland Metro crime and operations services, said losing a staff member was his "worst nightmare" come true.
"It's an absolute tragedy to lose an officer and have another so seriously threatened in this way," he said.
"Two people came out from the Hain Ave address, got into a vehicle and pursued the officers who were on foot," he said.
"As this was a covert operation we don't know yet whether they identified themselves as police officers, but I can't think of any reason to pursue and shoot anybody in this manner."
Both policemen were part of the technical support unit which worked covertly with the clandestine laboratory team.
Police said although neither of the two policemen shot was armed, there were armed police nearby for support.
"Sadly, the situation unfolded so quickly that they were unable to intervene to help their colleagues,' Mr Cox said.
Before the operation the property and occupants were the subject of a full risk assessment.
"There was nothing to indicate any undue risk to staff."
