He then started attacking people with a knife, stabbing two people, before he was shot by police. "They are in a suspected critical condition", they said.
Police said they were not looking for anyone else in relation to the attack. "A third person has also been taken to hospital".
The condition of the other two victims was not yet known.
Just after 5.20pm (local time), a body was seen lying under a white sheet on Bourke Street, near the entrance to Russell Place.
The street where the auto caught fire was the scene in January 2017 of a fatal but not terror-related incident in which a man drove his vehicle at pedestrians at high speed, killing six people and wounding about 30.
- mike yang (@fayfayang) November 9, 2018Different angle of the Bourke St attacker being shot by police.
Superintendent David Clayton told reporters at a media conference that police were called to reports of a auto fire and were "confronted by a man brandishing a knife and threatening them".
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"This is Victoria Police, please evacuate the area".
'The exact circumstances are yet to be determined at this stage. The suspect was shot in the chest by police, Clayton said.
"He seemed to be waving something, people around me screamed that he had a knife, but I couldn't see clearly from where I was", a witness told ABC News. HUNDREDS of police have swooped on Bourke Street in Melbourne's CBD after a auto reportedly burst into flames and a man began attacking police with a knife.
The incident comes as a trial continues into the horrifying rampage in Bourke St in January past year.
Chaos in #bourkest as a guy seems to have set his vehicle on fire then attacked police with a knife.
Neil McKeller, who works at Hylands Bookshop on Bourke Street, told Guardian Australia he heard a loud explosion and then gunshots.
James Gargasoulas is accused of deliberately crashing into pedestrians, killing six and injuring 27 others.