Australia police
[Representational Image]Reuters

A man has been reportedly shot dead by police and three officers have been injured in firing, after they stormed an apartment block in Brighton in Melbourne's Bayside suburbs.

Police responded to a hostage situation in Australia's Brighton on Monday afternoon. Reports state that heavily armed police and helicopters have swarmed the area and are currently dealing with the situation.

Reports state that the gunman involved in the siege reportedly called the Channel Seven newsroom during the firing and told that, "This if for IS (Islamic State)." Police have confirmed that they re investigating it as a terror-related incident, according to ABC news.

More than 20 gunshots are reported to have been fired in the Melbourne bayside suburb of Brighton. Police have ordered everyone in the vicinity to head to Coles supermarket for protection, where the residents will be put in lockdown.

The first police vehicle arrived at the scene to find a body in the foyer of the Bay St apartment block. The victim is believed to have been shot.

Police are trying to negotiate with a man in one of the apartments who has taken a female hostage with him.

The siege is taking place at Buckingham serviced apartments. Victoria specialist police units are currently at the scene, and have cordoned off the area.

Witnesses said that they heard an explosion around 4:30 om this afternoon at the serviced apartment on ay St near the Nepean Highway and were soon evacuated from the building.

The apartments is reportedly next to a children's swimming school and several doctors offices.