Terrifying footage has captured the moment a police officer was forced to shoot a woman dead after being struck by a car.

Police were called to Cecil Street in South Melbourne at about 5pm on Saturday following reports of a man allegedly wielding a machete.

As officers were making an arrest, a grey car was driven at a senior constable.

CCTV showed the heavily armed officer screaming in pain while being pinned against a wall by the car. 

He then fired four shots at the front windscreen of the vehicle, a stolen Ford Territory with South Australian plates.

The driver, a 34-year-old woman, was killed while her 26-year-old male passenger suffered non-life threatening gunshot wounds.

The policeman was also rushed to hospital suffering a broken leg. He has since been discharged.

A South Melbourne man, 39, was also taken to hospital for observation. He was later released and charged with possession of a prohibited weapon and theft of a bicycle. 

New CCTV footage shows a policeman being pinned to a wall by a car (pictured) during the arrest of an allegedly armed man

New CCTV footage shows a policeman being pinned to a wall by a car (pictured) during the arrest of an allegedly armed man

The driver of the car, a 34-year-old woman, was killed and her passenger, a 26-year-old male passenger, was injured

The driver of the car, a 34-year-old woman, was killed and her passenger, a 26-year-old male passenger, was injured

Three men (one pictured) were taken to hospital after the fatal shooting

Three men (one pictured) were taken to hospital after the fatal shooting

He was allegedly wanted by police prior to the shooting for unknown offences. 

The man was bailed to reappear in Melbourne Magistrates Court on August 12.

Victoria Police said it was too early to confirm whether the occupants of the stolen vehicle were known to the man.

The officer who opened fire has since been backed by his bosses and the Victorian Police Association over his actions.

‘It appears his response to this incident has been in line with his training and we will give him all the support he needs,’ Acting Assistant Police Commissioner Terese Fitzgerald said.

‘Every day our police members get in the divisional van and respond to incidents, that’s the nature of the job.

‘We are really grateful that his injuries are not more serious, it could have been far worse.’

She added the officer had put his life on the line.

‘This is the kind of incident that all of our members are at risk of all the time,’ Assistant Commissioner Fitzgerald said.

It's understood officers were attempting to arrest a man allegedly armed with a machete, when a car pinned the senior constable against a wall

It’s understood officers were attempting to arrest a man allegedly armed with a machete, when a car pinned the senior constable against a wall

‘This is not a great day for you at work when this occurs, so yes, it is terrifying.

‘The police are trained to respond in a certain way and that’s what’s taken place.’

Victorian Police Association secretary Wayne Gatt says officers remain under constant pressure and often have to fight for their lives while on duty.

‘When a car’s coming at you, there’s not a lot you can do. It is literally a case of do or die,’ he said.

‘This is what our (police) members are dealing with on a regular occasion … confronted by people in vehicles like this. It can be not only life-altering, but it can end your life.

‘There’s no magic wand for situations like this.’

Homicide squad detectives will investigate the matter with oversight from professional standards command, as is standard procedure for a fatal police shooting.

Shocked locals recalled hearing loud bangs before more officers swarmed the scene.

‘Well there were a few bangs, I’m not quite sure what they were but my wife sort of thought they might’ve been gunshots,’ one man said. 

‘There was certainly a couple of loud bangs and then the police arrive en masse.

‘There was one policeman up with his back to the wall that was getting some attention from other policeman.’

The policeman suffered serious injuries to his legs which Acting Assistant Police Commissioner Terese Fitzgerald acknowledged 'could have been far worse'. Pictured are police at the scene

The policeman suffered serious injuries to his legs which Acting Assistant Police Commissioner Terese Fitzgerald acknowledged ‘could have been far worse’. Pictured are police at the scene

Anyone with more information or footage is urged to contact Crime Stoppers.

Victorian minister Steve Dimopoulos described the shooting as a distressing situation.

‘Our thoughts are absolutely with the senior constable at hospital, his family, also the family and loved ones of the woman who passed away,’ he said.

There are no plans to fast-track the government’s machete ban laws set to come into effect on September 1.

‘The joint police say the machete ban can safely be implemented in September. That’s what the Victorian government will do. We’ll follow the police advice,’ Mr Dimopoulos added.

‘But we are having a machete ban. We’ve committed to it. It will be implemented in September and will be the only one in Australia.’

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