A "known terror suspect" who made threats against the Australian Prime Minister after stabbing two police officers has been shot dead, a day after Islamic State group called on its supporters to wage terror in their home countries.
The 18-year-old attacker was killed last evening after he stabbed two police officers from the Joint Counter Terrorism team in Melbourne's outer south-east.
Federal Justice Minister Michael Keenan confirmed this morning that the man was a known terror suspect.
"I can advise that the person in question was a known terror suspect who was a person of interest to law enforcement and intelligence agencies," Keenan said.
The minister, who would not take questions as it was an ongoing investigation, urged the community to "remain calm".
The suspect, whose family are from Afghanistan, had his passport cancelled recently and was considered a "person of interest" by authorities over terrorism, according to an ABC report.
He had been associated with the radical Islamic group called Al-Furqan, the report said.
Local police said an altercation between the man and the two officers took place after he was asked to attend an interview as part of an investigation.
Victoria Police Chief Commissioner Ken Lay said the man attacked a police officer who tried to shake his hand.
"When our police members have approached this young man, one has extended his hand to shake his hand and the response has been he was been stabbed in the arm," Lay said.
"The attacker has then turned on the second police member and stabbed him three or four times in the body and in the head. The first wounded member has then shot and killed the young man."
An Australian Federal Police (AFP) officer was injured and the other is a Victoria Police member. The two officers were admitted to hospital.
AFP Commander Bruce Giles said officers were looking into unconfirmed reports the man had been seen with an Islamic State flag before he was shot.
"There is intelligence to suggest that this incident may have happened but [we're] still confirming all the details to bring the links together on that," Giles said.
Victoria Police Assistant Commissioner Luke Cornelius did not give out details but ABC said it was understood that the man made threats against Prime Minister Tony Abbott.
On Monday, IS militants had released a statement urging the indiscriminate killing of citizens of all countries, including Australia, taking part in the US-led coalition against the militants.
Australia has deployed 600 troops to the UAE to join the international coalition to eradicate the militants.
