The incident happened at a home in the 8200 block of Pittsboro Goldston Road near U.S. Highway 421. The sheriff's office said an armed standoff escalated into a hostage situation.
Deputies entered the home after "developing serious concerns for the hostage's safety." The hostage was successfully rescued.
The suspect was identified as Kevin Dean Hammer, 50, of the 4900 block of Goldston Carbonton Road in Goldston.
The injured deputy, Senior Deputy Matthew Mitchell, had gunshot wounds to his arm and leg. Mitchell was taken to a hospital for treatment and was described as stable.
Mitchell, who has been with the sheriff's office since January 2020, was expected to make a full recovery.
As is standard in officer-involved shootings, the North Carolina State Bureau of Investigation has been called in and will conduct an independent investigation.
The sheriff's office is not sharing who was being held inside the home, what led up to shots being fired and why deputies were initially there.
Chatham County Communications Center says whatever started the incident was not called into the 911 Operations Center.
The standoff in Chatham is the second recent one in our area.
Last Tuesday in Granville County, there was another tense situation.
"It is unusual for us to have basically have two of the same types of situations within less than a week," said Law Enforcement Expert Roy Taylor.
He says the Chatham standoff did carry great risk.
"Negotiations for hours, trying to make the hostage taker more at ease, give them something that they feel like you're being an honest broker with them and you hope they'll release the hostage and come out themselves, but sometimes it does go bad," said Taylor.
The sheriff's office is not sharing how many deputies discharged their weapons.
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