Two other people are in hospital after being stabbed in a busy Bourke Street on Friday afternoon.
The officers were seen trying for at least a minute to detain the man peaceably as his attacks on them continued before one office shot him with a weapon.
Police have shot a knife-wielding man after three people were stabbed in Melbourne's Bourke Street.
One of the victims has died, while the others have been taken to hospital. Condition not yet known.
Police initially responded to reports of a vehicle on fire at the corner of Bourke and Swanston streets.
Streets were closed and trams halted while police attend the scene.
He lunged at passersby and police before being shot.
"Police shot the male in a chest and he is now in critical condition under guard in hospital", Victorian police superintendent David Clayton told reporters. The investigation is ongoing and we are keeping an open mind.
"Anyone with information or who witnessed the incident is asked to go to Melbourne West Police Station to make a statement", a police statement said.
'The exact circumstances are yet to be determined at this stage. "The area has been cordoned off", police said.
"It's so chaotic", witness Sarah told Tom Elliott.
Witnesses described a chaotic scene with an injured pedestrian lying on the ground, and numerous police cars and helicopters flying overhead.
An eyewitness said after the vehicle burst into flames, someone walked up to the alleged driver and was stabbed directly in the chest.
Another said they heard "what sounded like a bomb and gun shot".
It comes as a trial continues into the horrifying rampage in Bourke St in January past year. Police response was swift and overwhelming.
"I didn't know what was happening there was just so much chaos and screaming".
"I could see a big ute on fire driving across the road". Fully engulfed. Multiple loud bangs."This incident in Bourke Street comes on the second day of the highly-publicised murder trial of James Gargasoulas, who allegedly drove through Bourke Street Mall on January 20, 2017, killing six people and injuring 27 others".
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