The victim critically injured in the Canadian city's Greektown district is a girl of eight or nine, they added.
The gunman is dead, reportedly killed in an exchange of shots. The attack erupted on Danforth Avenue Sunday evening (Toronto time), when the area was teeming with people.
The motive for the shooting, which reportedly targeted at least two cafes or restaurants, is still unclear.
In a video clip shared by Canadian media, a white man wearing a dark cap and dark clothing and carrying a shoulder bag can be seen stopping on a pavement and pulling out a handgun before firing shots.
Police are now appealing for witnesses.
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