One dead in stabbing rampage in Melbourne

A knife-wielding man stabbed two people, one fatally, in Australia's second-largest city on Friday in an attack likely linked to terrorism, police said.

Witnesses reported the sound of a large explosion and a auto bursting into flames outside the Target store on Friday afternoon.

Melburnians have praised the bravery of police and Trolley Man as they come to terms with yet another horrific incident on Bourke Street.

Police were "confronted by a male brandishing a knife and threatening them".

Another witness on a passing tram told ABC Radio it seemed police had been trying to subdue a man who was waving something.

Victoria Police Superintendent David Clayton told reporters there are no know links to terrorism.

One video showed the man repeatedly lunging at police officers with what looked to be a knife. He was known to authorities because some of his family members were "persons of interest", Ashton said.

Mr Hair said two civilians became involved as well as two police, trying to stop the man from his attack.

A police officer finds room to shoot the suspect and the man drops to the floor clutching his chest. Two are being treated for their injuries.

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According to the police, the pickup truck that caught fire contained several barbeque gas cylinders and was part of an apparent terrorist attack.

"This is an evil and terrifying thing that has happened in our city and our state today and we condemn it", he said.

"I kept watching", said witness Tony Nguyen, after what he described as a "car bomb".

"It's basically a commuter hub and a central shopping district as well".

Her immediate thought was, "Oh no, not another Bourke Street incident", she said. Hundreds of people watched from behind barricades as police tried to apprehend the attacker.

Melbourne is Australia's second largest city, a cosmopolitan metropolis of nearly five million people famed for its cafes, bars, restaurants and high standard of living.

"There was a massive flame and bang, just smoke and lots of people", witness Shelley Reid told CNN affiliate Nine News.

Victoria Police responded to a major incident on Friday afternoon on Bourke Street in Melbourne, Australia.

About 6pm, police confirmed the victim had died.

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