Terror suspect killed after cops stabbed

By Patrick Caruana

A teenage terrorism suspect shot dead in Melbourne greeted two officers with a handshake before stabbing them multiple times, police say.

The 18-year-old Narre Warren man, who police believe may have previously displayed an ISIS flag, met the officers outside Endeavour Hills police station on the city's outskirts on Tuesday night.

He then stabbed one, an AFP officer, a number of times, before twice stabbing a Victorian officer in the forearm, Victoria Police Assistant Commissioner Luke Cornelius said.

Mr Cornelius said the Victorian officer fired a single shot that killed the man.

"Our members had no inkling that this individual posed a threat to them," he told reporters at the scene early on Wednesday morning.

"It's absolutely clear to us that our members really had no choice other than to act in the way in which they did."

Both officers were taken to hospital, where they remain in a stable condition.

AFP Commander Bruce Giles said the officers and the man had spoken cordially before the stabbing.

"The incident took place in the course of normal greetings; so, meeting with the individual, shaking hands, introducing and then the incident unfolded," he said.

He said it appeared the man had been acting alone.

Both officers were taken to hospital after being stabbed. Picture: Twitter

Commander Giles confirmed there was information suggesting the man had recently been seen with a flag of the jihadist group ISIS, also known as Islamic State.

However, Commander Giles said the officers had wanted to speak to the man about a "routine" issue.

"Police had cause for concern," he said.

Neither police spokesman would comment on media reports that the man had made specific threats against Prime Minister Tony Abbott.

Mr Cornelius said police had not singled the man out.

"Where we see individuals behaving in a way which causes concern for public safety, we have to reach out to those individuals," he said.

Police would not confirm the man's name or occupation, or comment on suggestions he had recently had his passport cancelled.

Bomb squad members and police dogs scanned the scene, but Mr Cornelius said the measures were precautionary.

The homicide squad and professional standards officers are investigating.