Police are treating the attack as terror related.
Australian police say they are treating a stabbing rampage in Melbourne's CBD as a terrorist attack.
One person was killed and two others were injured during the rush hour incident on Bourke Street - Which saw police shoot a knife-wielding suspect near a burning vehicle.
Having earlier ruled out terrorism Police have now upgraded their inquiries and are treating the incident as a terror attack.
Police said officers “initially responded to a report of a car on fire” in the city centre at 4:20 pm local time, but discovered at the scene that members of the public had been stabbed.
Media showed video footage of police then trying to restrain a large man in a dark tunic who was lunging, slashing and stabbing wildly at two officers as a pick-up truck burned nearby.
There's been an incident in the CBD near Bourke St. Details are still unclear – but please avoid the area and always follow the instructions of emergency services personnel. Official updates will be provided by @VictoriaPolice.
— Daniel Andrews (@DanielAndrewsMP) November 9, 2018
The officers were seen trying for at least a minute to detain the man peaceably as his attacks on them continued, before one office shot him with a weapon.
“A man was arrested at the scene and has been taken to hospital under police guard in a critical condition,” police Superintendent David Clayton said.
He said another person died at the scene and two others are still being treated.
Police warned people to avoid the area and dispatched the bomb squad to secure the area and examine the burning car.
Officers said they “are not looking for anyone further at this early stage.”