One dead, two injured in stabbing rampage in Melbourne

The Islamic State group says one of its fighters carried out a knife attack in Melbourne in which one man died and two were wounded. Source AAPMore

The Islamic State group says one of its fighters carried out a knife attack in Melbourne in which one man died and two were wounded. Source AAPMore

A Somali-born man set fire to a pickup truck laden with gas cylinders in the centre of the Australian city of Melbourne on Friday and stabbed three people, killing one, before he was shot by police in a rampage they called an act of terrorism.

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

Supt Clayton told reporters that when officers got out of the vehicle, they were confronted by a male brandishing a knife and threatening them.

Victoria Police confirms the attack, saying that the man and his entire family are known for his connections to North African extremists.

A man has been shot by police after he stabbed three people and set a auto on fire in Melbourne's CBD, Victoria Police said at a press conference on November 9.

The attacker had "barbecue-style gas cylinders" inside the vehicle and set it alight, according to The Guardian.

The man arrived in Australia from Somalia in the mid-1990s, according to the police, who were reluctant to reveal further identifying information.

The Commissioner also told media that Shire Ali had a criminal history for driving offences, cannabis use and theft, AAP reports.

Prior to the attack, Shire Ali was living with his family at the back of a home in Meadow Heights, which was raided by federal and forensic police on Saturday.

"It's fair to say he was inspired. Victorians would say we do not have to live like this". "We're saying it was more from an inspiration perspective".

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"The assessment was made whilst he held radicalised views, he did not pose a threat in relation to the national security environment", McCartney said.

"But that also means I must be the first to call out religious extremism", he said at a press conference in Sydney today.

"Equally, those strangers, people who were by-standers who knew nobody involved, who stepped in without a moment's hesitation, to render support and assistance to the courageous members of the Victoria Police, they too are people whose qualities make all of us proud as well". His brother Ali Khalif Shire Ali is now on remand awaiting trial next year for allegedly planning an attack, Ashton said.

Islamic State said one of its fighters carried out the knife attack.

A man aged 74, who had been stabbed in the face, died at the scene.

The deceased suspect had stabbed three people, leaving one dead and two others injured but they are not believed to be life-threatening wounds.

"We are now treating this as a terrorism incident", said Ashton.

It's the second time in four years Australia has witnessed militant violence.

Victoria police declined to comment when contacted about Islamic State's claim. However, at a later inquest, the coroner of New South Wales state said the gunman's actions fell "within the accepted definition of terrorism".

Other people on the scene threw chairs and tried to ram a shopping trolley into the attacker to take him out.

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