The shooting happened shortly after noon Wednesday near the Los Banos Community Center.
Los Banos Police Chief Gary Brizee says a landscaper encountered a man who claimed he had a gun.
When officers arrived, Chief Brizee says the man was uncooperative and failed to follow basic commands.
Then they say the man suddenly lifted his shirt and drew a handgun without warning.
One of the two officers fired a round at the suspect and hit him in the stomach.
"There will be several separate investigations that go on," said Chief Brizee. "The Department of Justice will do a separate investigation on their own. The Merced County District Attorney was also notified, they were on scene to their own independent investigation. We will be conducting an investigation of our own on the incident."
A replica handgun was recovered at the scene.
The officers were wearing body cameras, but the footage isn't being released at this time.
Two officers are now on administrative leave.