One dead in stabbing rampage in Melbourne

A police spokesman said that authorities are not looking for any other offender

One of the officers shot the man and he collapsed to the ground clutching his chest, the video showed.

Vision of the effort was shared across social media as police attempted to subdue the knife wielding terrorist Hassan Khalif Shire Ali.

Imam Musse described Shire Ali's family as "very decent" and said they worshipped at the Virgin Mary Mosque in Hoppers Crossing.

Shire Ali most commonly attended prayer in Melbourne's northern suburbs.

A 26-year-old man and a 58-year-old, said to be Tasmanian businessman Rod Patterson, were taken to hospital with what police said were non-life threatening injuries following the attack.

Ashton said the three victims, all men, and the suspect were transported to the Royal Melbourne Hospital.

Police said that there was no known link to terrorism at this stage and that "we'll keep an open mind as to whether there's any link".

Islamic State had claimed responsibility for the attack, which came two days before Remembrance Day, marking 100 years since the end of World War One, without providing any evidence.

The lone terrorist who murdered a man in Melbourne's Bourke Street was known to authorities for his radical views and had his passport cancelled amid concerns he would travel to Syria, federal police say.

The suspect drove to the Bourke Street area at around 4.10pm yesterday and deliberately started a fire in his vehicle before fleeing it.

The man, whom police say had been on their counterterrorism radar already, set a auto on fire in the city to attract a response and then began swinging a knife wildly. He was taken into custody in a critical condition.

The attacker was not publicly identified but had been "a person of interest" to Australian intelligence agencies, Ashton said.

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"The one who executed the ramming and stabbing operation in Melbourne (.) is one of the fighters of the Islamic State and he executed the operation in response to (a call) to target the citizens of the coalition", the ISIS news website Amaq said on Friday, according to news.com.au.

Victoria Police Commissioner Graham Ashton said security arrangements across the region as well as other public events, are being reassessed.

We're live with Superintendent David Clayton following an incident on Bourke Street in the CBD this afternoon.

He was shot by police as he lunged towards them with a knife.

"The overwhelming majority of African-Australians in Victoria are law-abiding and condemn any acts that threaten our peaceful, vibrant and multicultural state. that we love so dearly".

At least two members of the public stepped in to help police.

Victoria's opposition leader, Matthew Guy also denounced the attack.

"I am the first to protect religious freedom in this country, but that also means I must be the first to call out religious extremism", Morrison said.

"All the resources of our state should be directed towards keeping Victorians safe".

Police believe the threat of the attack was limited to Shire Ali.

However, Shire Ali was never targeted by a Joint Counter Terrorism Teams (JCTT) investigation because an assessment was made that he did not pose a threat to national security.

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