One person has been killed and two others wounded as a knife-wielding man went on a rampage in a busy street in central Melbourne.
Victoria Police said the unnamed attacker is in "critical condition" at the hospital following the incident, which left one of the victims dead.
Officers were initially called to reports of a auto fire near Bourke Street, a busy thoroughfare, at about 16:20 local time (05:20 GMT).
The suspect has been arrested and is in hospital in a critical condition, under police guard.
Counter terrorism police have been notified and are investigating.
One person was believed to be in a critical condition in hospital suffering a neck injury, a statement from Ambulance Victoria said.
The spokesperson confirmed that one person had died in the stabbing attacks and that the attacker was in hospital.
Police warned people to avoid the area, but said they "are not looking for anyone further at this early stage".
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