Federal Justice Minister Michael Kennan has said a young man fatally shot overnight was a known terror suspect.
The 18-year-old man from Narre Warren, who police believe may have previously displayed an ISIS flag, met the officers outside Endeavour Hills police station on the city's outskirts on Tuesday night.
He then stabbed one, an AFP officer, a number of times, before twice stabbing a Victorian officer in the forearm
Mr Keenan addressed media on the fatal incident on Wednesday, confirming the late man had been the subject of a police investigation.
“The person in question was a known terror suspect,” he said.
“He was a person of interest to law enforcement and intelligence agencies.”
Mr Keenan confirmed that the 18-year-old came to the police station following discussions with police, where he “carried out an unprovoked attack”.
“The incident occurred during a police investigation,” he said.
“It appears that the shooting by the police officer was in self-defence.”
Mr Keenan said it was a “horrible incident”, but urged Australians to remain calm.
“The public should feel confident that the police, security services and the government are taking every possible step to ensure their safety and the security of all our communities,” he said.
“I would encourage people to remain calm… We are protected by the best law enforcement and security agencies in the world, and we need to let them deal with the task at hand.”
He also said he had spoken with both Prime Minister Tony Abbott and Opposition Leader Bill Shorten.