The incident happened in Bairro Azul in Setubal.
The shooting began after four men argued over a carrier pigeons race from Carceres in Spain.
The Portuguese Public Security Police (PSP) said the 66-year-old gunman, a pigeon breeder, shot and killed three people aged from 30 to 60.
CNN Portugal said the gunman was an unemployed former security guard who shot himself when police arrived at the scene.
In a statement, the police confirmed when they arrived there were four bodies “which were supposedly the result of a shooting, but the causes and details are unknown.
Further reports from the website 20 Minutos said the men were allegedly arguing over a misunderstanding about the birds they had in cages in an open field.
Setubal police commissioner Andrei Goncalves described the deaths as “an isolated situation” related to an issue between the men.
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