Vehicle smashes into Melbourne's Bourke Street Mall and bursts into flames

One person died and two others were injured after after being stabbed in Australia's Melbourne.

"Police initially responded to a report of a auto on fire. a man was arrested at the scene and has been taken to hospital under police guard in a critical condition", Victoria state police said in statement.

Emergency services were called to a auto fire at the corner of Swanston and Bourke streets about 4.20pm on Friday.

The suspected attacker was shot by the police and was taken to a hospital for treatment.

"There is no known links to terrorism at this stage we will keep an open mind as to whether there is any link".

The police there issue a statement saying that a auto had burst into flames and that a small number of people were being treated for stab wounds.

"Three victims have been located, two appear to have been stabbed to the upper body, the third has died at the scene", Victoria Police said in a statement.

"One person has been taken to hospital with a neck injury".

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

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Video posted to Twitter and broadcast on television showed a man repeatedly swinging an object at two police officers in the downtown area of the city.

The confrontation occurred moments after a vehicle burst into flames near the intersection of Swanston Street, in the heart of the CBD.

Police officers at the scene on Bourke Street in Melbourne after a man attacked others with a knife.

"He seemed to be waving something, people around me screamed that he had a knife, but I couldn't see clearly from where I was", a witness told ABC News.

Victoria Police released a statement saying: "Police are now at an incident on Bourke Street in the CBD".

Images posted to social media clearly show a auto engulfed in huge amounts of flame.

When they arrived, they were allegedly confronted by a man who started lunging at them with a knife.

'Police response was swift and overwhelming.

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

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