A woman was shot while live streaming an argument on Facebook Live, after the altercation she was broadcasting degenerated.

The victim was shot in the arm on Tuesday afternoon (2 January), while live-streaming on social media an argument she was having with another woman sitting in a car in the 6400 block of South Calumet Avenue in Chicago's Parkway Gardens neighbourhood, south of Washington Park.

Chicago Police said that by Tuesday evening the video had been widely circulated on social media and was in the hands of investigators, who have confirmed its authenticity.

In the video, the attacker can be seen sitting in the car with a couple of other people while holding a handgun. The two women traded insults before shots were fired at around 3pm.

"At this point we have no reason to suspect the video is not authentic," chief police spokesman Anthony Guglielmi was quoted as saying by the Chicago Tribune.

"The victim in this case knows the offender and we are working to locate."

While the actual shooting is not visible in the video, Guglielmi added the police were in a "good position in the investigation".

According to the officials, the shooter was identified shortly after the incident but remains at large, along with a man who was in the car with her at the same time. The victim, meanwhile, was taken to Stroger Hospital in Cook County, where her condition has stabilised.

"What I can say is we believe this to be a domestic related incident between two individuals that know each other," Guglielmi explained. "We do not believe there is any threat to the public as this stemmed from an earlier interaction between the two of them."