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 could be heard. The man was shot in the chest by police and died of his injuries in hospital. It said the man was "one of Islamic State fighters" and had responded to IS calls for attacks in countries that are part of the worldwide coalition fighting the militants in Syria and Iraq.
Victoria's ambulance service said that three injured people were being treated at the scene. One had a head injury and the other suffered a neck injury, according to The Age. He has been arrested and taken to hospital in a critical condition.
It's understood a third person has also been taken to hospital.
It is understood the man stopped his auto on Bourke Street, not far from the Target store, and set it alight.
The man stopped his dual-cab ute on Bourke Street, not far from the Target store near the intersection of Swanston Street, and set it alight.
'I heard a massive explosion, the vehicle is completely alight, ' she said.
"I'm pretty sure he got stabbed in the face".
"There is no ongoing threat that we know of.as I speak to you tonight".
'Because he was on his stomach, they turned him over to see if he's alright, he was still alive'.
She said she saw two policemen trying to subdue a man as a vehicle burned.
Mr Ashton said security arrangements at Remembrance Day memorials and other public events scheduled over the weekend will be reassessed and it was likely police numbers there boosted.
Simultaneously, one heroic eyewitness rushes at the attacker with a shopping trolley, briefly slowing him down and falling in the process.
A fearless bystander dubbed "Trolley Man" has been praised for his selfless actions in his attempt to halt a knife-wielding man who'd stabbed three people in Melbourne's Bourke Street.
A witness who gave his name as Markel told Australian Broadcasting Corporation radio: "Bystanders were yelling out "just shoot him, just shoot him".
The police officers involved in the incident are "all okay".
'He seemed to be waving something, people around me screamed that he had a knife, but I couldn't see clearly from where I was, ' Michelle told ABC radio.
"It's the center of Melbourne, where a lot of the transportation changes over.it's probably the busiest part of Melbourne and late on a Friday", said Meegan May who witnessed part incident from a nearby tram.