Australian police on Friday reported multiple people were hurt in a rush hour stabbing incident in Melbourne´s central business district after they apprehended a suspect near a burning vehicle.

Paramedics said they assessed three people at the scene, one with a neck injury: "They are in a suspected critical condition. A second person has been taken to hospital with a head injury. Condition not yet known. A third person has also been taken to hospital."

Local media showed footage of a large man slashing wildly at police officers before being shot.

Police warned people to avoid the area, although the suspect is believed to have been detained.