Melbourne police shoot suspected "known wolf" terrorist during attack

Melbourne police shoot suspected

The terrifying moment Melbourne police shot a man who allegedly stabbed three passerby has been caught on camera.

Officials are treating the incident that brought Melbourne to a standstill during Friday afternoon rush hour as terrorism-related. The reason for the attack has yet to be confirmed.

Officers were confronted near the burning vehicle by a man "brandishing a knife and threatening them" while passersby called out that people had been stabbed, Victoria state police Supt.

Witnesses told The Age they were shopping in the area when they saw a man throw what they believed to be a bomb into a auto before it exploded.

The unnamed terror suspect was transported to Royal Melbourne Hospital, where he later died.

Three people were stabbed by the suspect, all of them men, police said. She then turned around to see a vehicle on fire.

Victoria Police said a bomb response unit had been called to the area and was now making the scene safe.

Two men shopping in the area told the ABC they saw a man throw what they thought to be a bomb into his vehicle.

Social media footage showed the attacker trying several times to stab one of the officers before a second officer drew his gun and a single shot was heard.

According to police, the other two victims, aged 26 and 58, sustained non-life threatening injuries.

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Footage captured the shocking scenes as a vehicle went up in flames and police shot the knife-wielding man in the chest after he confronted officers as they arrived at the scene.

Emergency services were called to a auto fire about 4.20pm.

Her immediate thought was, "Oh no, not another Bourke Street incident", she said.

A auto was seen burning on the northern strip of Bourke Street near the Target store, and a man was shot by police after an alleged stabbing, according to the Age.

"Then I heard a loud bang and someone said they could see someone doing chest compressions on someone as an ambulance started coming up the street as well".

"I really wanted to help but I was in shock, I didn't know what to do".

Police cordon off Bourke St after a vehicle explosion.

"We where told to keep away from the area as the guy had a knife and had stabbed people, I was anxious that it could be a planned attack and there could be more attackers".

The Islamic State group late on Friday said one of its fighters carried out the assault but provided no evidence for the claim, news agency Reuters reported from Dubai.