Victoria Police have confirmed they are treating today's incident as terror-related, however there is no ongoing threat.
It has also been confirmed the suspect has died in hospital after being shot by police.
The 'lone wolf' suspect was known to police as he had relatives who were persons of interest. BBQ gas bottles were found in the ute which was set alight by the suspect.
Events such as Stakes Day, Remembrance Day commemorations and the opening of the Myer Christmas Windows will still go ahead with a larger police presence.
EARLIER ON HIT
Victoria Police have issued a statement regarding an incident on Bourke Street this afternoon.
Police are currently at an incident on Bourke Street in the CBD. Police initially responded to a report of a car on fire near the corner of Swanston Street about 4.20pm. A man was arrested at the scene and has been taken to hospital under police guard in a critical condition. Police are not looking for anyone further at this early stage. A small number of people are being treated for stab wounds. The exact circumstances are yet to be determined at this stage. The area has been cordoned off and the public are urged to avoid the area. Anyone with information or who witnessed the incident is asked to go to Melbourne West Police Station to make a statement. We will provide further information when it comes to hand.
- Victoria Police
Ambulance Victoria has also confirmed that three people were assessed at the scene.
One person has been taken to hospital with a neck injury and is in a suspected critical condition.
A second person, condition unknown, has been taken to hospital with a head injury.
A third person has also been hospitalised, however their condition and injuries are unknown.
In breaking news, police are currently responding to an incident on Bourke Street.
Victoria Police are asking members of the public to avoid the area.
It is understood that there has been a substantial amount of smoke in the area, with unconfirmed reports of a car set alight.
Public transport has been affected, with Yarra Trams tweeting service updates.
More to come.