1 killed, 2 injured in "terror" attack in Australia's Melbourne

The dramatic scene was captured by Twitter user @chrismacheras

Australian police shot a knife-wielding man who is believed to have stabbed three people in Melbourne's city-center Friday, killing one of them.

Victoria Police is treating a stabbing attack in Bourke Street, Melbourne, that killed one man and injured two as a terrorist attack.

Horror footage shows a auto on fire.

Paramedics said they assessed three people at the scene, one with a neck injury: "They are in a suspected critical condition".

Victoria state police Commissioner Graham Ashton said the suspect, who was originally from Somalia, was known to police and the incident is being treated as terrorism.

Local media showed footage of a man slashing wildly at police officers before being shot.

Victorian premier Daniel Andrews posted an update on the situation himself, urging people to "please avoid the area and always follow the instructions of emergency services personnel".

Ashton said the attacker was known to the authorities at the state and federal level, mainly due to his relatives who are persons of interest to police.

The suspect has been shot and is alive, police say.

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

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Police were forced to shoot the man, who continually made stabbing gestures at them, near a burning vehicle.

Witnesses say they saw the man drive a truck into the Target centre and as the auto caught fire he tried to fight and stab police and bystanders.

'At the same time, passers-by were calling out that members of the public had been stabbed. "Unfortunately one is dead at the scene, two others are at hospital".

Victoria Police Superintendent David Clayton told reporters there are no know links to terrorism.

He's in a critical condition.

"I kept watching", said witness Tony Nguyen, after what he described as a "car bomb".

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

"Equally, those strangers, people who were by-standers who knew nobody involved, who stepped in without a moment's hesitation, to render support and assistance to the fearless members of the Victoria Police, they too are people whose qualities make all of us proud as well".

Witnesses can make a statement at Melbourne West Police Station.

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