Friday's attack is a double blow for the city as it coincides with an ongoing murder trial of 28-year-old James Gargasoulas, accused of ploughing his auto into crowds in the same area in 2017, killing six people.
A Melbourne-based reporter tweeted that nearby buildings were placed on lockdown by the police following the incident.
A large crowd of people also stood and filmed the man's confrontation with police.
'One person has been taken to hospital with a neck injury.
HUNDREDS of police have swooped on Bourke Street in Melbourne's CBD after a auto reportedly burst into flames and a man began attacking police with a knife.
"(Officers) were confronted by a male brandishing a knife and threatening them", Supt Clayton said. A man can be seen approaching two police officers with what appears to be a knife and attempts to stab them.
Markel Villasin, 22, was finishing his shift at KFC on Bourke St as the drama unfolded.
Police shot the man in the chest after he charged at them with the knife.
China debuts the world's first AI news presenter
An artificial intelligence (AI) system has been used to synthesise the presenters' voices, lip movements and expressions. China's Xinhua news agency on Thursday unveiled the world's first AI anchor that can read news in English and Chinese .
Bryce Harper Turned Down $300 Million Contract From Nationals
With each 26 years old, they are both expected to sign two of the most lucrative contracts in Major League Baseball history. They signed "in a non-rights market", Boras said - one in which multiple teams could not bid on his services.
Fox News Calls Hannity, Pirro's Campaigning With Trump A 'Distraction'
Opposition to Trump proved to be more a motivating factor for Democrats than support for the president a factor for Republicans. Hannity and Pirro spent the night broadcasting from the rally while simultaneously hyping the crowd ahead of Trump's arrival.
Three people have been stabbed, including the fatality.
The spokesperson advised a "small number of people" have been stabbed and police are not seeking anyone further at this time.
A Victoria Police spokesman confirmed one person had died and three people in total had been stabbed this afternoon.
Another civilian in a blue shirt tries to help police by grabbing a wooden outdoor chair.
This footage could provide police with vital clues as to the moments leading up to the moment the man was arrested and taken into custody.
Police said the driver got out of the vehicle, which then caught fire, and attacked three bystanders with a knife before being fatally shot by police.
On Friday, Police Commissioner Graham Ashton said the suspect had moved to Australia from Somalia in the 1990s. Clayton said there is no known link to terrorism, but stressed the investigation is still in its early stages.
One of them has succumbed to injuries, police said.
The street where the vehicle caught fire was the scene in January 2017 of a fatal incident in which a man drove his auto at pedestrians at high speed, killing six people and wounding about 30. "The area has been cordoned off and the public are urged to avoid the area".