Shots have been fired by police during a dramatic arrest in Melbourne.

The incident unfolded on Little Oxford street in Collingwood on Friday afternoon.

#BREAKING: Dramatic scenes in Collingwood with police opening fire on three men suspected of a violent carjacking today. #9News pic.twitter.com/3r86TpnIIp

— Nine News Melbourne (@9NewsMelb) March 6, 2020

Police said they’d arrested three males in relation to an alleged aggravated carjacking in Fitzroy in the early hours of Friday morning.

It is alleged three offenders threatened a male driver with a knife on Palmer Street about 1.40am and stole his blue Holden wagon.

The victim, a 20-year-old Footscray man received non-life-threatening injuries and was treated by paramedics at the scene.