A man who set a car on fire and stabbed three people in the Australian city of Melbourne has died in hospital after being shot by police.

Authorities now say they are treating the attack as a terror‑related.

The attacker was shot after confronting officers on a busy city street. He was taken into custody in a critical condition.

The two survivors are in hospital, neither are in a serious condition.

The Islamic State group has said that one of its "fighters" was behind the attack.

[Source: BBC News]