One dead after man sets car set alight, stabs pedestrians in Melbourne

A police spokesman said that authorities are not looking for any other offender

Police have shot a knife-wielding man after three people were stabbed in Melbourne's Bourke Street.

Emergency services were called to a auto fire at the corner of Swanston and Bourke streets about 4.20pm on Friday. Police shot the male in the chest and he is now in a critical condition under guard in hospital.

Police have since confirmed three people were stabbed, one fatally.

One person has been taken to hospital with a neck injury in a suspected critical condition, one with a head injury and a third with unknown injuries.

The condition of the other two is not known.

One of the victims has died, while the others have been taken to hospital.

Footage has emerged showing the suspect being restrained by two men, at least one of whom is a police officer.

'The exact circumstances are yet to be determined at this stage.

The area has been cordoned off and the public are urged to avoid the area, ' they said earlier.

Witnesses said the Holden Rodeo hit a pedestrian as it mounted the kerb and burst into flames outside Target near the Swanson Street intersection about 4.20pm on Friday.

There were large spots of what appears to be blood near the figure, as were a pair of men's black lace-up shoes.

Counter-terrorism police have been notified, and they are investigating, although there is no immediate indication the incident is terror related.

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.

About 6pm, Victoria Police Superintendent David Clayton holds a press conference just metres from where the incident unfolded.

Sarah Werkmeister, a witness, told The Herald Sun: "All I saw was the vehicle on fire, and the police cuffing someone on the ground".

A Melbourne-based reporter tweeted that nearby buildings were placed on lockdown by the police following the incident.

The incident comes as a trial continues into the horrifying rampage in Bourke St in January past year.

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