1 dead in Melbourne stabbing; man attacked cops before being shot

A vehicle can be seen on fire in Bourke Street Melbourne

Police said a Somali immigrant killed one person and wounded two others in a rush-hour stabbing spree in the heart of Australia's second city Friday, labelling it a terrorist attack.

The incident took place at Bourke Street as reported by Victoria Police.

Mr Hair said two civilians became involved as well as two police, trying to stop the man from his attack.

This image made from video shows police on street corner after a shooting in Melbourne, Australia.

The other two are into the hospital including one suffering from a neck injury and is suspected to be in critical condition.

The police can be seen backtracking to avoid the flailing attacker as the trolley-pusher tries to ram him head-on - he falls over in the process, then gets up again and takes control of the trolley once more.

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

The unnamed assailant was said to reside in Melbourne's northwestern suburbs, but had come to Australia from Somalia in or around the 1990s, when the country was ravaged by a civil war.

Video shows the man attempting to slash police officers with a large knife before falling to the ground.

A man with a shopping trolley is being heralded as a hero after putting himself in harm's way on Friday when he jumped in to help police take down a man who stabbed three people in Melbourne's CBD.

"A small number of people are being treated for stab wounds".

"Police are aware of an incident in the vicinity of Bourke Street", Victoria Police have said in a statement. "They are in a suspected critical condition", they said.

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Commissioner Ashton said the man was known to police and the federal intelligence agencies.

They say there is no known link to terrorism at this stage but are "keeping an open mind".

Twitter user Meegan May wrote: "Guy seems to have set his auto on fire, then attacked police with a knife".

Video taken by witnesses shows a vehicle on fire in the area and bystanders using a shopping trolley and chair to confront the attacker.

As police officers reached the scene they were confronted by a knife-wielding man who tried to attack them.

Police cordon off Bourke St following a stabbing incident in Melbourne.

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