One dead, another injured after rush hour stabbing attack in Melbourne

The dramatic scene was captured by Twitter user @chrismacheras

The dramatic scene was captured by Twitter user @chrismacheras

One person has been stabbed to death while two other victims remain in hospital after a knife-wielding man went on a rampage on a busy Melbourne street.

"We also take this opportunity to thank those very courageous and dedicated members of Victoria Police who did all of us proud in their very quick response in very unsafe circumstances", Andrews said.

Police initially responded to a report of a vehicle on fire near the corner of Swanston Street about 4.20pm.

As is common in these type of events, people are less concerned about finding out details about the attacker than they are about learning about Trolleyman and another man who tried to help by brandishing a chair. One of the officers raises his weapon, a shot is heard and the man falls to the ground clutching his chest.

Witnesses reported the sound of a large explosion and a auto bursting into flames outside the Target store on Friday afternoon.

Clayton said that the public is still advised that the area remains closed as investigations are ongoing at the crime scene.

Victoria Police confirmed the man has died and had links to convicted terror plotters.

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

A courageous passer-by used a trolley in an attempt to stop a man who attacked police on Bourke Street in Melbourne.

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Three people have been stabbed, including the fatality.

I praise the bravery of the police who were on the scene and took action and those who selflessly came to the assistance of the injured and provided comfort to the distressed. "A third person has also been taken to hospital".

A witness, Markel Villasin, told Australian Broadcasting Corporation radio: "Bystanders were yelling out "just shoot him, just shoot him".

"Police are aware of an incident in the vicinity of Bourke Street", Victoria Police have said in a statement. He has been arrested and taken to hospital in a critical condition.

Video shows the dramatic moment the attacker lunges at two responding police officers with the knife.

Police will investigate a possible copy-cat motive.

He later died in hospital, Victoria Police Commissioner Graham Ashton told reporters. "We will keep an open mind as to whether there is any link". A bomb squad has since rendered the auto safe.

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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