One dead, two injured, in Melbourne stabbing incident

The dramatic scene was captured by Twitter user @chrismacheras

Two other people are in hospital after being stabbed in a busy Bourke Street on Friday afternoon.

Media showed video footage of police then trying to restrain a large man in a dark tunic who was lunging, slashing and stabbing wildly at two officers as a pick-up truck burned nearby.

The knifeman then attacked three people, with one of them dead.

Photo from the scene showed crowds of people behind police barriers.

One of the victims has died, while the others have been taken to hospital. Their condition is not yet know.

The incident began with police getting reports of a auto that had burst into flames on the Bourke Street in Melbourne.

Streets were closed and trams halted while police attend the scene.

While the vehicle was quickly extinguished, reports soon followed of a man wielding a knife on Bourke Street.

He has been arrested and taken to hospital in a critical condition, police said.

"The investigation is ongoing and we are keeping an open mind", he says.

The Victoria Police took to Twitter to update on the situation.

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

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"Police are not looking for anyone further at this early stage", police said in a statement.

More than 100 police have swarmed on the area.

Witness Fiona told 3AW her friends had seen someone with a knife in the area and she'd been told he'd stabbed a security guard. Meanwhile, a vehicle can be seen blazing on the side of the pavement at the scene.

A witness filmed the horrifying scenes as the attacker tried to thrust his knife towards police on Bourke Street.

Another said they heard "what sounded like a bomb and gun shot".

Markel Villasin, 22, was finishing his shift at KFC on Bourke St as the drama unfolded.

Chaos in #bourkest as a guy seems to have set his auto on fire then attacked police with a knife.

'Police response was swift and overwhelming.

"I could see a big ute on fire driving across the road".

"I heard a massive explosion, the auto is completely alight".

James Gargasoulas is accused of deliberately driving his auto into pedestrians on Bourke Street, hitting 33 people.

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