A knife attack that left one dead and two others wounded Friday in Australia's second-largest city in the middle of rush hour is linked to terrorism, police said.
"People who'd seen it had told me they heard shots being fired, and everyone heard an explosion that was like the petrol exploding".
Police shot the man when he approached officers swinging the knife.
Commissioner Ashton said the man was known to police and the federal intelligence agencies. Other footage showed two stab victims lying on the ground nearby and bleeding.
Police cordon off Bourke St following a stabbing incident in Melbourne.
At least two members of the public bravely stepped in to help police.
Police did not identify the attacker but Ashton said the man was known to them and intelligence authorities because of family associations.
Later, a man was arrested after he was shot at the scene and taken to a hospital under police guard in a critical condition.
Police work at the crime scene following a stabbing incident in Melbourne on November 9, 2018.
In multiple videos that surfaced, a man can be seen trying to stab two policemen who try to make several attempts to wrest the knife from the man.
"The exact circumstances are yet to be determined".
Warning text messages were sent after the attack and police sealed off the downtown area, usually busy with shoppers and diners on a Friday evening.
"Me and the managers ran out and that's when we saw the vehicle on fire and then we saw the guy on the floor and we wanted to help, there were two blokes helping him out already, he was face down pools of blood around his face", he told AAP.
Sky News Australia's Patrick Murrell said police had tried to "talk [the suspect] down and tried to use the Taser" before shooting him.
"One person has been taken to hospital with a neck injury".
I condemn the act of terrorism in Melbourne today that has tragically taken the life of a fellow Australian who has died as a result of this evil and cowardly attack.