Police say they have foiled a terror plot planned to take place on Christmas Day in the area around Federation Square and Flinders Street.
Police undertook raids at a number of properties across Melbourne this morning and made 7 arrests.
Five more remain in custody and are being questioned.
“We believe (the attack) was going to involve an explosive event and we have gathered evidence to support that,” Chief Commissioner of Victoria Police Graham Ashton told a press conference.
Ashton says police believe that the seven arrested were “self radicalised but certainly inspired by Isis and Isis propaganda.”
Those arrested were all aged in their 20s.
Premier Daniel Andrews thanked all members of the Victorian Police and AFP for their work.
More to come.