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Man dies after Vic police shooting

A man has been fatally shot by police after allegedly confronting them with a weapon, in Victoria. (AAP)

A man has died after he was shot by police at Drouin in regional Victoria.

A police statement has confirmed the man was shot after apparently producing "an edged weapon" during a traffic incident in the West Gippsland town, 100km east of Melbourne.

The shooting followed an armed carjacking earlier on Thursday morning at Mirboo North, about 60km from Drouin.

"Police then received reports of a vehicle, believed to be the stolen Audi, driving erratically in the Drouin area shortly before 9am," the statement said.

"Responding police attempted to stop the car before it was involved in a collision.

"During the highly dynamic incident it is believed the male produced an edged weapon and was shot by police.

"The man has since died."

A caller to 3AW, Brock, said he saw the man running at police.

"The police were yelling at him to drop it (a weapon). He didn't drop it and they shot him twice," he said.

Brock said the incident happened after the man's car was involved in a head-on collision, following a police chase.

Police said there were initially reports of an armed carjacking around 7.40am in Mirboo North, with a man armed with a knife threatening another before stealing his silver Audi station wagon.

The homicide squad will investigate the shooting on behalf of the coroner, with oversight from the professional standards command.

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