WITNESSES have described their horror at seeing bodies "flying" into the air as a car drove erratically through Bourke Street Mall in Melbourne this afternoon.
It comes as CCTV footage shows terrified pedestrians running for safety as a car is seen flying down the street.
One woman, Renee, who was waiting nearby and facing the window of Bourke Street, told news.com.au she heard a "loud thud" as three people were hit in front of her eyes.
"I saw the car on the footpath and I saw the people out of the corner of my eye fly in the air. "There were three or four contorted bodies on the ground."
"There was a girl standing right in front, the car had missed her. She looked around, saw the bodies, looked down the street, then just started screaming."
Was in Bourke St Mall when the driver who caused the police operation in #Melbourne went past. Shirtless, cigarette hanging out of his mouth— Ellen (@punzikstan) January 20, 2017
One man, Hank Kerr, told The Guardianhe saw "people flying everywhere" as he sat on the tram when he saw the incident unfold.
"We saw this car on the footpath," he told journalist Calla Wahlquist.
"There were people jumping out of the way and people being hit. All we could see is the car and carnage. People were flying everywhere. It was shocking to see."
Paramedics have confirmed three people have died with up to 20 people injured, some with "serious injuries".
There are unconfirmed reports former Victoria Police Chief Christine Nixon helped victims on the scene.
American tourists Michelle and Daryl told Sky News they saw at least four or five people injured and heard at least five gun shots as they ducked for safety.
"We were coming up the street and we saw the pram down from up the street," Michelle said. "(We took cover) then we came back out and saw all the people injured on the side walk. I saw four or five (people injured). There were police everywhere. They drew their weapons right away.
"(I was) stunned when I saw them drawing their weapons. People started screaming. We ran the opposite direction of police. People started screaming."
Another witness, known as Chris, told Sky News there was "just a hell of a lot of blood.
"I feel pretty moved and quite sick. It's a horrible thing to have had happened."
Meanwhile, another eyewitness who saw the car "circling and circling" around Flinders Street Station told News 24 she saw the driver "half hanging outside the car".
"A few friends and I just walked out of Flinders Street Station and we saw basically a whole swarm of people go just directly outside the station to see a car that was just circling and circling around, and instantly we thought it was a car crash.
"People were trying to stop this man who was driving around and around and he was half hanging outside the car - even the street performer in Federation Square was warning the crowd to stay away, because he was just so reckless, to the point where he just didn't care, obviously, what he was doing.
"It was absolute chaos and from that very moment, the sirens have not stopped."