A POLICEMAN who died on a firearms training exercise was shot dead by a colleague, investigators have revealed.

PC Ian Terry, 32, was fatally wounded while he was taking part in the exercise run by the Greater Manchester Police firearms unit at a disused warehouse in Newton Heath.

Paramedics rushed to the scene and tried to revive the officer. He was taken to North Manchester General Hospital where surgeons tried to save him but he died shortly after arrival.

The Independent Police Complaints Commission (IPCC) has launched an investigation and said initial enquiries showed that PC Terry died 'after being struck by a single shot discharged from a shotgun carried by a colleague.'

Naseem Malik, IPCC commissioner for the North West, said: “My sympathies go out to the family and friends of the man who died. This must have been a very traumatic experience also for all the officers involved in the exercise. I will ensure a thorough investigation is conducted to determine the full circumstances of the incident.”

PC Terry, from Burnley, Lancs, had been a firearms officer since 2002 after joining the police force in 1997 and was described as a "highly regarded" officer.

He was taking part in a pre-planned exercise involving firearms officers from Greater Manchester Police in a huge disused warehouse, known locally as the Sharp building, in Newton Heath. The fatal shot was fired at around 11.35 am on Monday.

Dave Whatton, acting chief constable of Greater Manchester Police, said: "This was a tragic incident and our thoughts are with Ian's family and friends. He was a well-respected officer and will be sadly missed."

He added: "Everybody from Greater Manchester Police is devastated with the news we have all received and the loss of a highly regarded colleague and friend to many officers in the Greater Manchester force."

A formal statement released by GMP said: "A police officer has died after he suffered a gunshot wound during a training exercise in north Manchester earlier today, Monday, June 9, 2008.

"The incident happened at 11.35am on Thorpe Road in Newton Heath.

"The officer suffered a serious chest injury and was taken to North Manchester General Hospital where he died."

A large area at the back of the former Sharp Electronics distribution centre was cordoned off and forensics officers could be seen taking photographs of two weapons at the scene.

A number of detectives and an ambulance were also at the scene of the shooting - a loading area for lorries overlooking the Oldham Loop railway line.

Uniformed police were also guarding the gate of the Thorp Road site, which was vacated by the company a few years ago.

A passing van driver said: "Sharp left a few years ago. I thought this place was being used as a storage centre. I didn't know it was being used by the police. To hear that a policeman has been shot dead is very shocking."

Speaking in the Commons, Home Secretary Jacqui Smith told MPs: "The whole House will be saddened to learn of the tragic death today of a police officer during a training exercise with Greater Manchester Police.

"This demonstrates the dangers that police officers face on our behalf.

"I am sure that the whole House will join with me in expressing our deepest sympathy to the officer's family, friends and colleagues."