A MAN has died after being shot by police in Drouin this morning, Thursday, January 21.

Police were initially called to the intersection of Baths Road and Strzelecki Highway at Mirboo North to reports of an armed carjacking about 7.40am.

Investigators have been told a man armed with a knife made threats to a man before stealing his silver Audi station wagon.

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

Responding police attempted to stop the car before it was involved in a collision, a police media statement said.

“During the highly dynamic incident it is believed the male produced an edged weapon and was shot by police,” the statement continued.

The man has since died.

The investigation is in its infancy, detectives from the Homicide Squad will investigate to determine the exact circumstances on behalf of the Coroner, which will be oversighted by Professional Standards Command, as per standard protocol when a police firearm is discharged.

Anyone who witnessed the incident is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential report online at www.crimestoppervic.com.au.