Melbourne attack: Driver 'well-known' to police

Melbourne attack
James Gargasoulas is arrested (Supplied)

The death toll from a horrifying attack in Melbourne has risen to four, and includes a young child.

Twenty others were also injured when a man ploughed his vehicle into a crowd along Bourke St in the bustling heart of town.

The alleged driver has been named as 26-year-old James Gargasoulas, who has an extensive history of family violence and drug abuse. Police say he is well-known to them.

Gargasoulas is also alleged to have stabbed his brother just hours before the car attack.

He was shot by police and arrested near the corner or Bourke and William streets. He was seen on the ground, handcuffed, shirtless and wearing a pair of red underwear.

One of the injured includes a three-month-old baby girl, thrown from her pram.

Victorian Premier Daniel Andrews praised the response of emergency services and the public.

"We, through our response - through the work of our emergency services, the instinctive way in which Victorians have reached out to support each other - we can be confident that we are stronger than this evil criminal act."

Australian Prime Minister Malcolm Turnbull shared the same sentiments.

"We thank and acknowledge the heroism of the police and the emergency workers who rushed to the aid of the victims, joined by bystanders who mindless of their own danger sought to help those who'd been attacked."

Newshub.