Knife-wielding attacker goes on rampage in Melbourne

At least one person was killed and two others wounded in a rush hour stabbing incident in Melbourne's central business district, police said on Friday.

Police have closed down several blocks in the middle of the Melbourne CBD as they attend to an incident involving a vehicle that reportedly "exploded".

Just after 5.20pm (local time), a body was seen lying under a white sheet on Bourke Street, near the entrance to Russell Place.

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

No terrorist link has been made at this stage of the investigation, according to police.

The other two are into the hospital including one suffering from a neck injury and is suspected to be in critical condition. The condition of the surviving pair is unknown.

One of the victims has died, while the others have been taken to hospital.

The exact circumstances are yet to be determined at this stage.

Police are asking people to avoid the area and said more information would be given when it was available.

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Police are seen responding to an incident at the intersection of Bourke Street and Swanston Street in Melbourne, Friday, November 9, 2018. Meanwhile, a vehicle can be seen blazing on the side of the pavement at the scene.

"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.

Chaos in #bourkest as a guy seems to have set his auto on fire then attacked police with a knife.

Police have also urged the public to avoid the Street after witnesses describe a auto bursting into flames. Police response was swift and overwhelming.

The area has been cordoned off and the public is urged to avoid the area.

Neil McKeller, who works at Hylands Bookshop on Bourke Street, told Guardian Australia he heard a loud explosion and then gunshots.

Markel Villasin, 22, was finishing his shift at KFC on Bourke St as the drama unfolded.

The Metropolitan Fire Brigade said the fire was contained within 10 minutes.

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