A father who had been on the run with his three children in New Zealand's wilderness for nearly four years has been shot dead by police.

Tom Phillips, who disappeared with his children in late 2021, had evaded capture despite a nationwide search and multiple sightings over the years. The case had gripped the country and remains one of New Zealand's most enduring mysteries.

Phillips was killed in a shootout around 02:30 on Monday in Piopio, a small town in northern New Zealand, police said.

Officers were responding to a reported robbery at a commercial property when Phillips and one of his children were spotted riding a quad bike. Police officers then gave chase before laying road spikes to stop them. The bike hit the spikes and went off road.

When police reached the vehicle they were met with gunfire, leading to an exchange that left one officer seriously injured and Phillips shot dead at the scene. Although formal identification was pending, police were confident it was Phillips.

Following the incident, the other two children were found at a remote campsite, and all three were reported unharmed. The child who was with Phillips provided crucial information to help locate the remaining children.

It remains unclear whether the children were made aware of their father's death. Their mother expressed relief over the end of the ordeal but sadness over the way events transpired.

Phillips had been on the run since losing legal custody of his children, and sightings indicated that he had resorted to breaking into stores for supplies. The community was left questioning how he managed to evade capture for so long, especially given his skills and local knowledge.

Prime Minister Chris Luxon described the events as "sad and absolutely tragic," noting that the situation has left many New Zealanders concerned about the children's future in light of their father's death.