The leader of a major drugs cartel has been arrested in a chicken shop after two people died in a horror shootout.

Leader of the deadly Sinaloa cartel Alan Ervey Juárez Castillo — known as known as 'El Cano' — was arrested on Tuesday night along with seven of his accomplices, according to the State Attorney General's Office in Guadalupe, Mexico.

His capture, which came after he was issued an arrest warrant for aggravated homicide and kidnapping, followed a manic earlier exchange of fire with cops that had seen two people killed.

El Cano was apprehended by cops as he sat down for a meal with his family at a chicken restaurant in Colonia Valle Soleado and gave himself up without resistance, according to a report from Proceso News.

Footage being shared online is reported to show a dramatic police chase at the time of the shootout in the town of Nuevo Leon.

It is the latest setback to befall the Sinaloa cartel in the fiercely competitive and deadly world of organised crime in Mexico.

Last year members of the Jalisco New Generation Cartel carried out at a raft of attacks against the Sinaloa Cartel in a bid to assert its dominance.

And the Jalisco New Generation Cartel (CJNG) has increasingly moved to assert itself in the state of Chiapas, which offers key arms and drug smuggling routes into neighbouring country Guatemala.

Suspected CJNG members opened fire on Sinaloa Cartel soldiers in the city of Tuxtla Gutierrez on Wednesday, July 7, in front of horrified eyewitnesses.

Ramon Rivera, a Sinaloa Cartel plaza chief in Chiapas, was among the five people killed.

He was said to be travelling with his bodyguards before they were shot at point-blank range.

Sinaloa's ruthless rival CJNG was led by famous drug lord El Chapo until his imprisonment in 2019.

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