A Morwell man, 31, was fatally shot by police on Thursday after a car chase through Gippsland.
Police were called to the intersection of Baths Road and Strzelecki Highway at Mirboo North to reports of an armed carjacking about 7.40am.
A man with a knife allegedly made threats to the owner of an silver Audi station wagon before allegedly stealing the vehicle.
The Audi was seen by witnesses driving through Morwell, Traralgon, Churchill and Drouin, where it collided with a guard rail on the Princess Freeway.
Assistant Commissioner Glenn Weir said the car was "rendered inoperable" when it hit the guard rail.
"Police confronted the male who exited the car with the edged weapon, (he) refused demands to put the weapon down (and) advanced on police," he said.
"Two shots were fired (by a male police officer) and the man was struck.
"Police on the scene rendered first aid and called for an ambulance... unfortunately efforts by police and the ambulance were unsuccessful and the man died at the scene."
AS Weir also said the four officers on the scene were ''extremely shaken".
"No one goes to work and thinks that they are going to have to be placed in that position but they have undertaken immediate action following a really serious criminal offence taken action as per their training," he said.
"What has happened, happened now the end result will be a matter for the Coroner.
"They are very shaken and they will have plenty of support through the investigation and further for the trauma no doubt they will feel."
Ass Comm Weir also said it was a scary experience for the owner of the Audi.
"A terrifying experience in a quiet part of South Gippsland early in the morning to be confronted with an offender armed with a knife and have your car taken," he said.
Earlier: Police were called to the intersection of Baths Road and Strzelecki Highway at Mirboo North to reports of an armed carjacking about 7.40am.
A man armed with a knife allegedly made threats to a man before allegedly 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.
The male allegedly produced an edged weapon and was shot by police.
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