One critical after multiple stabbings ‘incident’ in Melbourne

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"A second person has been taken to hospital with a head injury".

The chaos started when 3AW was flooded with calls from people at the scene who had witnessed a vehicle "bursting into flames" just after 4pm on Friday.

Terrifying footage has emerged of the moment a man lunged at police with a knife in Melbourne's Bourke Street on Friday afternoon.

"The cops were trying to hit him with batons and he wasn't going down", he said.

"Police shot the male in the chest and he is now in a critical condition in hospital", Superintendent Clayton said, adding the officers are OK. He's been transported to hospital under police guard.

"As they got out of the auto they were quickly confronted by a male brandishing a knife and threatening them".

'At the same time, passers-by were calling out that members of the public had been stabbed. At a press conference, a police spokesperson said there are no links to terrorism at this stage.

Three people were stabbed in the incident and police confirmed one of the victims died at the scene, while another two were rushed to hospital.

"Police are not looking for anyone further at this early stage", police said in a statement.

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Another person at the scene said: "I saw people running, screaming". He was taken into custody in a critical condition.

They had initially thought the man was running to catch a tram close by, before a nearby police vehicle rushed to the scene. Police response was swift and overwhelming.

"I heard a massive explosion, the auto is completely alight".

Another said they heard "what sounded like a bomb and gun shot".

The man then follows the attacker as he continues down the street with police around him, once again pushing his trolley towards the group.

Panicked pedestrians ran in all directions away from the scene, some hiding in nearby cafes and shops, locking themselves in back rooms.

The incident occurred on a section of the busy street that is closed to traffic.

"I could see a big ute on fire driving across the road". The suspect was shot in the chest by police, Clayton said.

"There's been an incident in the CBD near Bourke St", he tweeted.

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