A Somali-born Australian man who stabbed several people in the southeastern city of Melbourne on Friday, killing one, was inspired by the Islamist extremist group "Islamic State" (IS), but did not have any direct links with it, police said on Saturday.
A vehicle was seen burning on the northern strip of Bourke Street near the Target store, and a man was shot by police after an alleged stabbing, according to the Age.
Three men were stabbed by the suspect and one of them died at the scene.
Dubbed Trolley Man by the internet, the unidentified man used a shopping trolley to repeatedly ram the knife-wielding attacker, who was slashing at police.
The area has been cordoned off and people have been asked to avoid the area.
Police said then they believed he was an Islamic State sympathiser and was planning an attack Melbourne's central Federation Square on New Year's Eve in 2017.
The three passersby who were stabbed - all men - were all taken to hospital.
The person is known to police.
Mr Clayton said investigators did not believe there were any other assailants.
He further said Ali was was the brother of a man arrested in relation to committing acts in preparation for a terrorist attack.
At least two members of the public stepped in to help police.
The man, whom police say had been on their counterterrorism radar already, set a vehicle on fire in the city to attract a response and then began swinging a knife wildly.
"They're all very angry ... because it brings a bad impact to the community", he said.
Prime Minister Scott Morrison said the national terrorism advisory remained at "probable", the midpoint of a five-tier system, and told reporters in Sydney that radical Islam was the issue.
We're live with Superintendent David Clayton following an incident on Bourke Street in the CBD this afternoon.
"He assaulted one of the police offices through the vehicle window by punching him".
The suspect died from his injuries half an hour after arriving at the hospital.
Victoria state premier Daniel Andrews said the attack was "an evil and terrifying thing that has happened in our city and state today".
A witness who came out of KFC to see the commotion told ABC after the attack it looked "like police officers didn't know how to handle the situation".
"It's the center of Melbourne, where a lot of the transportation changes over ... it's probably the busiest part of Melbourne and late on a Friday", said Meegan May who witnessed part incident from a nearby tram.
The bystander said that other people had run and hid.
One of them has succumbed to injuries, police said.
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