One dead, two injured, in Melbourne stabbing incident

Car on fire after crashing into Melbourne's Bourke St Mall

Police confirmed one person had been killed, while two others were in hospital.

A man is in a critical condition after he attempted to attack police on Bourke Street in Melbourne this afternoon.

Officers were initially called to reports of a vehicle fire near Bourke Street, a busy thoroughfare, at about 16:20 local time (05:20 GMT). He has been arrested and taken to hospital in a critical condition. Clayton said there is no known link to terrorism, but stressed the investigation is still in its early stages.

The man again attempted to stab and slash at the officers several times before one policeman unsuccessfully tried to taser him and his partner shot the assailant in the chest.

Ambulance Victoria said three people were injured at the scene, including one person who suffered a neck injury and is in a suspected critical condition. The condition of the surviving pair is unknown.

It's understood a third person has also been taken to hospital. Victoria Police said at a press conference.

'The exact circumstances are yet to be determined at this stage.

Police are asking members of the public to avoid the area.

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There were large spots of what appears to be blood near the figure, as were a pair of men's black lace-up shoes.

Dozens of police cars are on the scene with helicopters overhead.

"It's so chaotic", witness Sarah told Tom Elliott.

"I heard at least one gun shot initially".

The incident occurred on Bourke Street just outside the Target Centre, near the intersection of Swanston St.

Images posted to social media clearly show a auto engulfed in huge amounts of flame.

A Melbourne-based reporter tweeted that nearby buildings were placed on lockdown by the police following the incident.

It comes as a trial continues into the horrifying rampage in Bourke St in January previous year.

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