The 18-year old teen shot dead in Melbourne has been identified as Numan Haider.
The 18-year old teen shot dead in Melbourne has been identified as Numan Haider.Facebook

The Australian counter-terrorism unit had to shoot down a teenager suspected to have terror links with the ISIS, after he stabbed two police officers in Melbourne.

The 18-year-old youth, identified as Numan Haider also made repeated threats against Australian Prime Minister Tony Abbott moments before being shot, ABC news reported.

The Australian Federal Police were investigating Haider over alleged terrorism offences. He was among the dozens whose passports had been recently cancelled by authorities as part of counter-terrorism measures.

Haider used a small knife to attack an Australian federal police officer and a Victorian policeman before he was killed with a single shot, Sydney Morning Herald reported on Wednesday.

Speculations are rife that the teen with alleged ISIS links was shot in the head.

Reports have found that Haider was not going to be arrested when he met officers on Tuesday night. Instead he  was called in for a 'routine' questioning said federal police commander Bruce Giles.

Haider was meeting a Victoria Police officer and an Australian Federal Police member, who were investigating him over allegations that he recently unfurled an Islamic State flag in a suburban shopping centre and made several inflammatory remarks about the Australian Federal Police and ASIO on social media.

It is believed the 18-year old had brandished an Islamic flag, moments before the shooting. The flag reportedly was that of Islamic State, confirmed AFP Commander Giles.

Haider, whose family migrated from Afghanistan, came under the police radar three months ago for his increasingly radical hate speech.

Investigators said that Haider was part of a small group of radical Islamists in Melbourne who were frequently found to be sharing violent hate messages on Facebook.

On his Facebook page, which now has been taken down, Haider had posted photographs of himself wearing military camouflage with an Islamic State flag alongside abusive message towards ASIO and the federal police.

"Let's not put the focus on other things. The main message I'm sending with these statuses and photos is to the dogs AFP and ASIO who are declaring war on Islam and Muslims," Haider had posted on Facebook.

The Australian investigators believe that Haider could have been planning to follow instructions from the ISIS to behead the officers, cover the bodies in the flag and then take photos to post on the internet.