Officers initially spotted a stolen car travelling in an alley in the 100-block of Avenue M South at roughly 4 a.m.
The car was driven away as police were about to attempt a traffic stop.
Minutes later, a single-vehicle collision was reported at Ashworth Holmes Park.
The stolen car was found as well as a suspect running from the scene. During a foot chase, the suspect shouted threats to officers that he would shoot them, according to police.
Further information led officers to a multi-unit residence in the 700-block of 33rd Street West where the suspect was barricaded inside a room.
According to police, the suspect informed officers he had hostages. Three people later ran out of the home unharmed.
Officers forced entry into the room and sent in a police dog to assist in the apprehension of the suspect.
Paramedics assessed the 25-year-old Saskatoon man at the scene for minor injuries from a police dog bite.
No weapons were found inside the home or on the man. Ammunition was found inside the car.
The man is facing charges of breaking and entering, unlawful confinement and uttering threats. He will remain in custody until he can be seen by a justice of the peace on Tuesday night.
Police said the accused also had a number of outstanding warrants for his arrest in relation to armed robberies, aggravated assaults, and weapons offences.
The investigation is ongoing and further charges are pending.
Anyone with information is asked to contact Saskatoon police at 306-975-8300 or Crime Stoppers at 1-800-222-8477.