Authorities have arrested 34 people, including French, Belgian and Algerian nationals, after a person died in a pre-dawn shootout in a Dutch village reportedly linked to a notorious drug lord.

Police urged people in Overasselt, near the German border, to stay indoors with doors and windows shut in case further suspects were on the loose.

At about 4am on Tuesday, a group of heavily armed men in balaclavas approached a house in Overasselt and shots were fired, resulting in the death of a 51-year-old, reportedly a security guard.

Police responding to the scene immediately came under fire, with two officers sustaining non-life-threatening injuries, police spokesperson Jolanda Aalbers said. Several weapons, data storage devices and vehicles were also seized, she said.

According to local media, the shootout was likely connected to the criminal underworld of Dutch drug lord Jos Leijdekkers, also known as Bolle Jos (fat Jos).

Leijdekkers is one of the Netherlands’ most wanted criminals and has previously been convicted for his role in international cocaine trafficking.

He has lived in Sierra Leone for at least three years and is reportedly in a relationship with the daughter of the country’s president, Julius Maada Bio.

The Het Parool newspaper said the gunfight resulted from a conflict over several hundred kilograms of cocaine thought to have been trafficked by Leijdekkers’ gang.

Deputy chief prosecutor Monique Vinkesteijn said there had been a shooting at the same house last year related to a “longstanding conflict” but did not reveal further details.

“We know that the group currently in custody is international in nature,” Vinkesteijn said. “It includes French and Belgian nationals, people from Algeria, and also individuals from the Netherlands.”

The prosecutor said the suspects faced a variety of charges ranging from murder to manslaughter to preparing a kidnapping and that it was possible further arrests would follow.

Local mayor Joerie Minses said the whole community was shocked by the violent events.

“What happened in Overasselt crosses all boundaries. This is un-Dutch … Overasselt has been shocked by a form of extreme violence that is totally unacceptable,” he said.