A 23-year-old man spotted brandishing a carving knife at a Westfield shopping centre in Sydney's northwest is now under police guard in hospital after he was shot by officers.
Three elderly female bystanders sustained injuries when the male and female officers began shooting but they are currently in a stable condition, assistant commissioner Dennis Clifford said.
"Unfortunately some bystanders were also injured with either bullet or fragment wounds," Clifford said.
"And all up we have four people that have been injured through gunfire being the person of interest to us and three ladies who I'm told are aged between 60 and 80 years of age."
He said police had to make a "very critical decision" in a matter of seconds in what was a "life and death situation".
The man lunged at a female officer before she, and her colleague, opened fire and left him with wounds to his arm, thigh and abdomen, the Daily Telegraph reported.
Art teacher Raquel Redmond posted her account of the incident on Facebook.
More to come.