Three people were stabbed, one fatally, at a Melbourne shopping district Friday afternoon before a man wielding a knife was shot and killed by police as a car went up in flames nearby, News.com.au reported. Police said they are now treating the attack in the Bourke Street district as an act of terrorism, News.com.au reported.

Victoria Police confirmed that one person was dead at the scene, The Guardian reported.

Two people were taken to a hospital, police spokesman David Clayton said in a news conference.

In a news conference Friday night, Victoria police Chief Commissioner Graham Ashton said the alleged attacker was known to state and federal police. Ashton also confirmed the man, who was from Somalia, had died Friday after being shot in the chest by police.

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

The incident began when the man drove a 4WD into the city and it was set on fire, News.com.au reported.

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