Two shooters opened fire on Friday at a rural branch of the University of Panama, killing a young man and wounding another, police and university officials said.
The unknown gunmen arrived at the university's Veraguas regional college, about 155 miles (250 km) west of the capital, where a group of first-year agricultural science students had gathered to work on a project on the grounds, said college director Pedro Samaniego.
"A vehicle stopped and two people got out, firing shots at a group of people who were on campus," said Veraguas police chief Hector Delgado in a video message.
Alvaro Leones was mortally wounded and another student, Anel Terreros, was taken to a hospital, Samaniego said.
An investigation has been launched and no arrests have been made, a police source said on condition of anonymity.
Shootings at Panama's schools or universities are very rare.
In a statement suspending administrative work and classes, the university condemned the violence and expressed condolences to Leones' friends and families.
"Leones was an outstanding member of our university community," university President Eduardo Flores said. "His tragic departure represents an irreparable loss for our institution."