A drunk man dressed as Santa Claus opened fire on a Halloween party, killing one man and injuring four other people in Texas.

The "highly intoxicated" man was allegedly hosting the party at his Avenue F home in the city of Austin on Saturday (28 October).

But in the early hours of the following morning, Randall Gaston Jones, dressed as the Christmas character, allegedly opened fire on a crowd inside his home leaving Michael McCloskey, 37, dead.

The 32-year-old was later arrested at a neighbour's home shortly after 6am the next day, with four people needing treatment in his home.

Austin police Detective Lee Knouse told the Dallas Morning News that Jones knew all the victims. "This was not a random act of violence," Knouse said in a news conference.

Police found four victims bleeding from gunshot wounds, authorities said, with three needing hospital treatment, one rejecting hospital care. McCloskey died several hours later.

Austin police Lt. Jason Staniszewski said, according to the New York Post, that Jones was "highly intoxicated" before he was told to "go to bed or calm down" by party-goers.

But Jones allegedly returned from his room with a gun and confronted the crowd, firing one round at the floor, intending to disperse everyone in the room. McCloskey tried to intervene after Jones had opened fire and was shot several times, Staniszewski stated on Monday.

Detectives have said that they are not aware of any lasting disagreements between Jones and the rest of the attendants.

One of the shooting victims remained in critical condition as of Monday, while the other person had been released from hospital, police said.

According to the Austin American-Statesman Jones remains in custody at the Travis County Jail on three counts of aggravated assault with a deadly weapon.

It was reported that Jones, who has made no statements to investigators, is due to be charged with murder later on Monday.