One dead, attacker shot after Melbourne rampage

About 4.31pm, police send out a media alert asking the public to avoid the Bourke Street area.

THE crazed attacker who stabbed three bystanders on a busy Melbourne street has died, as police confirm the rampage was terror-related.

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".

One person is dead and two have been injured in a stabbing incident in Melbourne.

At around 4:30pm, nearby police responded to a report of a vehicle on fire in Bourke Street.

Two people, apparently members of the public, came to the aid of police, one using a shopping trolley and another using a chair to try and stop the attacker.

Mr Ashton said when a marked police auto arrived at the scene, the attacker reached in and punched an officer through the window before pulling out the knife and engaging the officers.

"(Officers) were confronted by a male brandishing a knife and threatening them", Supt Clayton said.

Another witness on a passing tram told ABC Radio it seemed police had been trying to subdue a man who was waving something.

Police work at the crime scene following a stabbing incident in Melbourne.

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Bourke Street is now blocked between Swanston and Russell streets, and people are being advised to avoid the area.

He later died in hospital, Victoria Police Commissioner Graham Ashton told reporters.

Police were forced to shoot the man, who continually made stabbing gestures at them, near a burning vehicle.

Major disruptions are expected in the CBD on Friday evening, as details of a major incident in Bourke Street emerge.

"A small number of people are being treated for stab wounds. The bomb response unit have cordoned off the area".

Two police officers arrive nearly instantly to find a blue utility vehicle ablaze, with flames shooting high into the air.

More than 100 police have swarmed on the area.

Another witness said: "Big fire".

The attacks comes on the second day of the highly-publicised murder trial of James Gargasoulas, who allegedly drove through Bourke Street Mall on January 20 past year, killing six people and injuring 27 others.

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