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Disturbing footage shows auto circling street moments before it drives into crowd

“I can also confirm that this is not a CT (counterterrorism)-related incident”, said Stuart Bateson, acting commander of the Victoria Police.

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It was not clear whether the incident was related to the Australian Open tennis championship, which is now being held in the city.

Another witness Maria Kitjapanon said: “I saw the vehicle, which was incredibly battered even by that stage”. He was already on bail after being charged last week with several offences.

More than 10 police cars in the area.

Another witness said, “Police chased the auto down Bourke Street, where they opened fire on the vehicle between William and King Streets”.

Police cars tried to intervene, as did several bystanders, one wielding a baseball bat.

“Pedestrian access has been closed on Bourke Street between William and Swanston Streets”.

The vehicle drove into the mall about 1.30pm and police said a number of people had been injured.

Dozens more were injured.

Witnesses said a baby was thrown from the pram and a three or four-year-old child may have been dragged up to 100 metres down the street, Sky News reported.

According to local media reports, five people are in a critical condition in hospital.

Two adults and a child died after being struck by the auto, Mr Ashton said, and a fourth person died in a hospital on Friday night.

A witness, Hank Kerr, said he had seen people jumping out of the way but there were also people being hit and thrown to one side.

Office workers reported hearing gun shots and have been told to stay in doors. “I think it was pretty much in vain”.

He was eventually hit in the arm by shots police fired at him before his auto crashed and he was arrested.

Neighbours said they had regularly heard arguing inside the Raleigh Street unit.

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Police shot the 26-year-old male driver – who has a history of family violence, mental health and drug issues – in the arm and arrested him. “Our prayers and deepest sympathy are with the victims and their families, of this vicious criminal attack in Bourke St, Melbourne today”, he said on Twitter.

Mourners visit Melbourne's centre to pay their tributes to the victims who were killed on Friday