A man set fire to a pickup truck laden with gas cylinders in the centre of the Australian city of Melbourne on Friday and stabbed three people, killing one, before he was shot by police in what they called a terrorist attack.

The utility truck carrying barbecue gas cylinders was on fire on crowded Bourke Street as the Somali-born driver stabbed bystanders and attacked police officers.

The cylinders did not explode and the fire was put out in 10 minutes, by which point the rampage was over.