One person has been killed on a central Melbourne street where a knife wielding man was left in a critical condition after being shot by police.
One of them has succumbed to injuries, police said.
Victoria Police responded to a major incident on Friday afternoon on Bourke Street in Melbourne, Australia.
"Police shot the male in a chest and he is now in critical condition under guard in hospital", Victorian police superintendent David Clayton told reporters.
"We will keep an open mind as to whether there is any link, it's very early stages in the investigation", he said.
Further details are unclear however video posted to Twitter and broadcast on television showed a man repeatedly swinging an object at two police officers.
"A small number of people are being treated for stab wounds", the statement said.
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The suspect has been arrested and is in hospital in a critical condition, under police guard.
One of the victims has died, while the others have been taken to hospital.
Police are not looking for anyone further at this early stage.
Police are asking people to avoid the area and said more information would be given when it was available.
"It's so chaotic", witness Sarah told Tom Elliott.
SBS News has contacted Victoria Police for comment.
Police officers at the scene on Bourke Street in Melbourne after a man attacked others with a knife. Meanwhile, a vehicle can be seen blazing on the side of the pavement at the scene.
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RS said in a statement that initial reports indicate the attacker was a member of the Afghan National Defense and Security Forces. He was a military intelligence officer with Joint Force Headquarters and was expected to return to his mayoral job in January.
Melbourne resident Meegan May tweeted: "Chaos in Bourkest as a guy seems to have set his auto on fire then attacking police with a knife".
Sarah Werkmeister, a witness, told The Herald Sun: "All I saw was the vehicle on fire, and the police cuffing someone on the ground".
'Police response was swift and overwhelming.
The incident comes as a trial continues into the horrifying rampage in Bourke St in January a year ago.
"I really wanted to help but I was in shock, I didn't know what to do".
Police are asking members of the public to avoid the area.
Another witness said: "Big fire. I heard at least one gunshot initially".
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