Bourke Street incident: Man shot by police after stabbing and vehicle fire

"Unfortunately one is dead at the scene, two others are at hospital".

They had initially thought the man was running to catch a tram close by, before a nearby police auto rushed to the scene. He was taken into custody in a critical condition.

Footage circulating on social media shows a vehicle, which appears to have crashed into shop fronts, on fire.

While the full chain of events is yet to be established, it is reported that a man burned a auto before starting his knife attack.

Ambulance Victoria said paramedics had assessed three people at the scene.

No terrorist link has been made at this stage of the investigation, according to police.

Police said they were not looking for anyone else in relation to the attack. He has been arrested and taken to hospital in a critical condition.

One person, believed to be the suspect, is in a critical condition, while the condition of the remaining two people is unknown.

According to them, the police initially responded to a report of a auto on fire near the corner of Swanston Street about 4.20 pm (10.50 am IST).

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The fire was brought under control within about five minutes, a Metropolitan Fire Brigade spokeswoman said. "People were running", he said.

A man from Neapoli Cafe in Russell Place told the Herald Sun that he heard a lot of bangs and others reported hearing loud explosions. It sounded like a gunshot.

The officers then retreated to the other side of the road as the attacker, dressed in a long jacket and grey trousers, ominously pursued them as horrified bystanders called on police to shoot him.

The message over the loudspeakers says: "This is Victoria Police, please evacuate the area".

"Anyone with information or who witnessed the incident is asked to go to Melbourne West Police Station to make a statement", a police statement said.

Streets were closed and trams halted while police attend the scene.

Premier Daniel Andrews tweeted, urging people to avoid the area and follow the instructions of emergency services personnel.

"Today, more than ever, we offer our thanks to Police and first responders for the unbelievable work they do for all of us".

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