Gunman on the loose in Melbourne

Police in Melbourne, Australia are on the hunt for a gunman who killed a man and injured two others in the city's central business district this morning.

Officials warned all office workers to remain indoors, and train services to Flinders Street Station were temporarily on hold, as investigations were carried out on the intersection of Flinders Lane and William Street.

Malcom Bates, who witnessed the shootings at around 8:15 a.m., said the gunman grabbed a woman from inside a taxi. "The lady got away and he turned and shot three people basically point blank," Mr Bates said. "I was right across the road". He said that the incident took no longer than the "wink of an eye".

Paramedics struggled to revive the one victim for almost an hour before declaring him dead at the scene. The two injured people have been taken to the Royal Melbourne Hospital in a critical condition.

Police believe the incident began at the Bar Code 24-hour bar in King Street, when a woman attempted to get into a taxi. She was apparently grabbed by the hair by the gunman who then shot her and two men who attempted to come to her aid.

Police have identified the gunman as Christopher Wayne Hudson, aged 29. They believe him to be a member of the Hells Angels bikie gang. Police have described Hudson as about 180 cm tall, with short brown hair and wearing a dark tracksuit top and dark denim jeans.

A building worker on a construction site on the corner of Queen and Flinders Streets has reportedly discovered a handgun. It is understood the gunman may have thrown the weapon into the site as he fled the scene.